Multinational Corporations Are Often Criticized at Home for Diverting Labour-Intensive

question 18

True/False

Multinational corporations are often criticized at home for diverting labour-intensive jobs from the domestic labour force to foreign labour markets, diverting capital investments away from the domestic market, and encouraging corrupt practices in their foreign subsidiaries.

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Definitions:

Voluntary Quota

A self-imposed limit on the quantity of goods a country exports or imports.

Elasticity of Supply

A measure of how much the quantity supplied of a good changes in response to a change in the price of that good.

Price Elasticity

The degree to which the demand for a good is responsive to changes in its price.

Tax Passed

Occurs when the burden of a tax is shifted from the entity legally responsible for it to another party, such as consumers.