One Advantage of the Use of Fees or Royalties to Manage

question 29

Multiple Choice

One advantage of the use of fees or royalties to manage the MNC's cash flow is ____.

• A)less communications costs
• B)less exchange rate risk
• C)more favorable tax treatment by the parent country's government
• D)less suspicion by the host government

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Definitions:

Sample

A part of a population that is studied to reach conclusions about the entire population.

Case Study

A descriptive research method in which a single individual or a small number of persons are studied in great depth.

Naturalistic Study

Research conducted in a real-world setting without the manipulation or control of variables, observing natural behaviors.

Survey Research

A method of gathering information by asking questions to a predefined group of people, often representing a larger population.