Which of the Following Is Not a Significant Motive for the Formation

question 48

Multiple Choice

Which of the following is not a significant motive for the formation of multinational enterprises?

• A) Avoiding tariffs by obtaining foreign manufacturing facilities
• B) Obtaining the benefits from overseas comparative advantages
• C) The acquisition of natural resource supply sources
• D) Subsidies granted by the home government to overseas corporations

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Definitions:

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Raw Materials

The basic components or inputs used in the production process to manufacture finished goods.

Direct Labour

Labor costs that are specifically traceable to the production of goods or provision of services.

Raw Materials

The basic materials and components required at the start of the production process to manufacture goods.