Which of the following statements is true of the terms under which companies com

Question

Which of the following statements is true of the terms under which companies compete?

Select one:

a. The governments of subsidiary countries establish the terms of competition and trade on various transactions.

b. The terms under which companies compete is determined by the fluctuations in the exchange rate of the currencies of subsidiary countries.

c. The terms under which companies compete is determined by direct negotiation between the host government and the multinational corporation.

d. The ability to curtail unprofitable operations determines the terms under which companies compete.

e. The terms under which companies compete in a competitive marketplace are established by the host government.

Explanation / Answer

c. The terms under which companies compete is determined by direct negotiation between the host government and the multinational corporation.

Statement - a is not true. Exchange fluctuations, curtail of unprofitable operations are very remote reasons that can effect the competing competency of a firm. Statement - e is flase, since host government cannot directly establish competitive rules.

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