Which of the following ways can a multinational enterprise (MNE) adopt to reduce its exposure to political risks in its host country?
A. By negotiating with the host country's government to clear off its debts
B. By establishing more than one affiliate in the host country
C. By threatening to cease all exports of its products to the host country
D. By equating its physical assets in the host country with its local borrowings
Answer: D
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The accelerator theory can explain the paradox that both interest rates and investment rise and fall in concert during the business cycle if
A) the effect of changes in Y effect on In dominate the effect of interest rates on investment. B) the LM curve is constant. C) the IS curve is constant. D) the effect of changes in interest rates on In dominate the effect of changes in Y on In.
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $6. If Kyle is currently buying five turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is not; gained from the fifth sandwich is greater B. is; from the fifth sandwich is less C. is; from the fifth sandwich is greater D. is not; gained from the fifth sandwich is less