Question $11$ pts

How do MNEs typically increase revenue?

Group of answer choices

Reducing operational costs

Expanding their customer base

Limiting product lines

Decreasing marketing efforts

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Flag question: Question $2$

Question $21$ pts

Why might a company outsource production abroad?

Group of answer choices

To increase product quality

To enhance management control

To reduce production costs

To focus on domestic markets

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Flag question: Question $3$

Question $31$ pts

What impact does global diversification have on an MNE's risk?

Group of answer choices

Increases risk

Reduces risk

Has no impact on risk

Shifts risk to suppliers

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Flag question: Question $4$

Question $41$ pts

What types of risk are reduced through multinational diversification?

Group of answer choices

Credit and operational risks

Foreign exchange and political risks

Interest rate and market risks

Legal and compliance risks

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Flag question: Question $5$

Question $51$ pts

What is the goal for MNEs when raising capital?

Group of answer choices

To find the most reliable source

To acquire the cheapest capital

To focus on domestic markets

To raise the largest amount possible

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Flag question: Question $6$

Question $61$ pts

What does the theory of comparative advantage suggest?

Group of answer choices

Countries should focus on domestic production

Countries gain by producing goods they are least efficient at

Global economic welfare increases when countries trade based on comparative advantage

International trade reduces total global production

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Flag question: Question $7$

Question $71$ pts

Why do companies become multinationals?

Group of answer choices

To limit their market exposure

To reduce their product range

To seek markets and raw materials

To avoid international trade

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Flag question: Question $8$

Question $81$ pts

True or False: MNEs cannot reduce the riskiness of cash flows despite international expansion

Group of answer choices

True

False

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Flag question: Question $9$

Question $91$ pts

True or False: The primary reason MNEs outsource production is to increase their customer base.

Group of answer choices

True

False

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Flag question: Question $10$

Question $101$ pts

True or False: MNEs raise capital more easily in the United States due to more liquid equity markets compared to smaller economies.

Group of answer choices

True

False

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Flag question: Question $11$

Question $111$ pts

True or False: The theory of comparative advantage suggests that the world gains value when countries produce and trade products they have a comparative advantage in$.$

Group of answer choices

True

False

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Flag question: Question $12$

Question $121$ pts

True or False: Companies become multinational solely for expanding their market size.

Group of answer choices

True

False