A _____ Is an MNE That Operates Worldwide on a Borderless

question 105

Multiple Choice

A _____ is an MNE that operates worldwide on a borderless basis.

• A) franchise
• B) transnational corporation
• C) foreign subsidiary
• D) greenfield venture
• E) limited liability company

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Definitions:

Economic Profits

The surplus remaining after total costs (including both explicit and implicit costs) are subtracted from total revenue; often indicates the firm is outperforming the average in its industry.

Industry Supply Curve

A graphical representation showing the relationship between the price of a commodity and the quantity supplied by all producers in the market.

Industry Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the total quantity demanded by all consumers in the industry.

Explicit Costs

Explicit costs are direct, out-of-pocket payments for expenses like wages, rental fees, and materials, clearly identifiable and recorded in a company's financial statements.