Podcast
Questions and Answers
Which of the following is a consequence of consumers boycotting a multinational corporation (MNC)?
Which of the following is a consequence of consumers boycotting a multinational corporation (MNC)?
- The government may impose barriers on the MNC's subsidiary.
- Consumers' income levels will increase, thus increasing consumption.
- The MNC's subsidiary will experience increased sales.
- Consumers' income levels will decrease, thus decreasing consumption. (correct)
A microeconomic perspective focuses on ____ forces such as economic conditions that can affect the value of an MNC.
A microeconomic perspective focuses on ____ forces such as economic conditions that can affect the value of an MNC.
- external (correct)
- internal
- neither internal nor external
- both internal and external
If an MNC has a subsidiary in Italy that exports its products to various European countries that use the Euro as their currency, the MNC is not subject to exchange rate risk.
If an MNC has a subsidiary in Italy that exports its products to various European countries that use the Euro as their currency, the MNC is not subject to exchange rate risk.
- True
- False (correct)
Compared to other methods of international business, international trade generally results in ____ exposure to international political risk and ____ exposure to international economic conditions.
Compared to other methods of international business, international trade generally results in ____ exposure to international political risk and ____ exposure to international economic conditions.
Which method of international business is most appropriate for Boca Co. to expand its business to Japan and maintain complete control over the operations?
Which method of international business is most appropriate for Boca Co. to expand its business to Japan and maintain complete control over the operations?
A decentralized management style of an MNC results in relatively ____ agency costs.
A decentralized management style of an MNC results in relatively ____ agency costs.
Which of the following is a method of international business that allows an MNC to have complete control over its operations in a foreign country?
Which of the following is a method of international business that allows an MNC to have complete control over its operations in a foreign country?
Compared to other methods of international business, international trade generally results in ____ exposure to international political risk.
Compared to other methods of international business, international trade generally results in ____ exposure to international political risk.
Which of the following is a consequence of consumers boycotting an MNC's products?
Which of the following is a consequence of consumers boycotting an MNC's products?
Which of the following is a characteristic of a decentralized management style in an MNC?
Which of the following is a characteristic of a decentralized management style in an MNC?
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