Firms undertake multinational operations in order to ?
Correct answer: D. All of the above
- A. hire low-income workers
- B. manufacture in nations they have difficult exporting to
- C. obtain necessary factor inputs
- D. All of the above
Explanation
Multinational operations can reduce labor costs, overcome barriers to exporting by producing inside a target market, and secure scarce or necessary factor inputs. Since all three are valid motives, the combined option is correct.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
American labor unions have maintained that U.S multinational corporations have been ?
Which business device involves the creation of a new business by two or more companies often for a limited period of time ?
________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
The migration of employable workers from low-paying nations to high-paying nations tends to decrease ?
The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
If a person can be prevented from using a good, the good is said to be ?