In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 5

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to potentially ____ local currencies.

• A) more; strong
• B) more; weak
• C) less; strong
• D) less; weak
• E) B and D

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Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs and perspectives different from one's own.

Egocentrism

A cognitive trait where an individual fails to understand that other people might have different points of view from their own.

Script for Crying

A socially constructed guide or expectation regarding when, where, and how it is appropriate to express tears or sorrow.

Conservation

The principle in cognitive development where a child learns that quantity doesn’t change despite the arrangement or appearance altering.