_________ Often Provides Multinationals with a Valuable Method to Reduce

question 8

Multiple Choice

_________ often provides multinationals with a valuable method to reduce currency and political risks.

• A)Multiple sourcing
• B)Knowledge seeking
• C)Economies of scale
• D)Economies of scope

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Definitions:

Purchase Method

An accounting method used to consolidate the financial statements of a parent company and its subsidiaries, reflecting the purchase of one entity by another.

Statutory Consolidation

The process of combining the financial statements of a group of companies into one, as required by law, to present the financial condition and operations of the group as a single entity.

Legal Corporations

Business entities that are legally recognized as individual entities with rights and liabilities distinct from those of their members or shareholders.

Divisions

Separate units or branches within a company or organization, often specializing in different products or services.