When deciding where to produce, a key decision criterion for a multinational enterprise
A) is the nationality of its founders.
B) hinges on the ownership of its various subsidiaries.
C) is the tax laws of the various countries is it considering.
D) is the location of its headquarters.
C
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What role can the government play in correcting for externalities?
What will be an ideal response?
According to the Keynesians,
a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s. b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s. c. there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s. d. budget deficits and trade deficits should not be a source of concern