The Agency Costs of an MNC Are Likely to Be

question 73

Multiple Choice

The agency costs of an MNC are likely to be lower if it:

• A)scatters its subsidiaries across many foreign countries.
• B)increases its volume of international business.
• C)uses a centralized management style.
• D)A and B.

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Definitions:

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from several sellers, implying a more deliberate decision-making and selection process.

Unsought Product

A type of product that consumers typically do not think about buying or do not know exists until they see it or need it.

Coring Machine

Equipment used to remove a cylinder of material, such as soil or rock, for analysis or construction purposes.

Specialty Product

Goods or services that have unique characteristics and are bought less frequently with a higher level of customer loyalty and involvement.