All other things equal, the creation of multinational firms is most likely to occur when:
A) it is more costly to internalize transactions than to engage in arms' length transactions with other firms.
B) firm activities are subject to constant returns to scale.
C) firms' acquired reputations do not have any value in foreign markets.
D) firms operate under increasing returns to scale.
Correct Answer:
Verified
Q5: The increasing-returns-to-scale model of trade:
A) shows that
Q6: According to the two-country Heckscher-Ohlin model, international
Q7: A multinational enterprise (TNC) is defined as
Q8: According to the textbook, there is evidence
Q9: Horizontal foreign direct investment (FDI) refers to
Q11: TNCs have gained great political power via:
A)
Q12: One reason for the growth of TNCs
Q13: The prominence of TNCs suggests that:
A) the
Q14: Which of the following is considered foreign
Q15: Which of the following statements about foreign
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