Concern about the ability of independent foreign firms to maintain product quality
A. is an inherent disadvantage faced by the multinationals.
B. makes FDI preferable to licensing firms in the foreign markets.
C. makes licensing firms in the foreign markets preferable to foreign direct investment (FDI).
D. often results in the formation of a license agreement between a foreign firm and a multinational enterprise.
Answer: B
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The unit of account is defined as
A) an object that is accepted in return for goods and services. B) the medium of exchange. C) the exchange of goods and services directly for other goods and services. D) barter. E) an agreed upon measure for stating prices of goods and services.
To maintain their economic profits, firms in monopolistic competition must continually engage in
A) product innovation and development. B) lowering their product's price. C) raising their product's price. D) realizing short-run losses. E) making the demand for their product more elastic.