MNEs situated in countries with small illiquid and segmented markets are most like:
A) small domestic U.S. firms in that they must rely on internally generated funds and bank borrowing.
B) large U.S. MNEs in that they are all MNEs and have worldwide markets and sources of financing.
C) small domestic U.S. firms in that they have a strong niche market in the U.S.
D) None of the above is true.

Question

Quizplus · Accepted Answer

MNEs situated in countries with small illiquid and segmented markets are most like small domestic U.S. firms in that they must rely on internally generated funds and bank borrowing. Large U.S. MNEs have worldwide markets and sources of financing, which is not necessarily the case for MNEs in countries with small markets. Therefore, option B is not correct. Option C implies that MNEs in these countries have a strong niche market in the U.S., which is not necessarily true. Option D is too general and does not provide a correct answer.

MNEs Situated in Countries with Small Illiquid and Segmented Markets