A. increase the transfer of technology between nations
B. make it harder to nations to foster activities of comparative advantage
C. always enjoy political harmony in nations where their subsidiaries operate
D. require governmental subsidies in order to conduct worldwide operations
Related Mcqs:
- American labor unions have maintained that U.S multinational corporations have been ?
A. exporting American jobs by investing overseas
B. exporting American jobs by keeping investment in the U.S
C. importing cheap foreign workers by shifting U.S investment overseas
D. importing cheap foreign workers by keeping U.S investment at home - Multinational corporations ?
A. always produce primary goods
B. always produce manufactured goods
C. produce primary goods or manufactured goods
D. None of the above - Multinational corporations face problems since they ?
A. cannot benefit from the advantage of comparative advantage
B. may raise political problems in countries where their subsidiaries operate
C. can only invest at home but not overseas
D. can only invest overseas but not at home - Firms undertake multinational operations in order to ?
A. hire low-income workers
B. manufacture in nations they have difficult exporting to
C. obtain necessary factor inputs
D. All of the above - ________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
A. marginal cost pricing
B. full cost pricing
C. price discrimination
D. transfer pricing - Accusations of American labor unions against U.S multinational firms include all of the following except ?
A. enjoy unfair advantage in taxation
B. export jobs by shifting technology overseas
C. export jobs by shifting investment overseas
D. operating at output levels where scale economies occur - Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?
A. Certificates
B. Sureties
C. Security bonds
D. Bond - The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers - Which business device involves the creation of a new business by two or more companies often for a limited period of time ?
A. multinational corporation
B. international joint venture
C. horizontal merger
D. vertical merger - International joint ventures can lead to welfare losses when the newly established firm ?
A. adds to the pre-existing productive capacity
B. enters markets neither parent could have entered individually
C. yields cost reductions unavailable to parent firms
D. gives rise to increased amounts of market power
