Asked by Natalie Zavala on Jul 17, 2024
Verified
Legal and economic differences among countries,although important,do NOT pose significant problems for most multinational corporations when they coordinate and control worldwide operations of subsidiaries.
Legal Differences
Variations in laws and regulations across different jurisdictions.
Economic Differences
Variations in economic conditions or performance, typically among countries, regions, or sectors.
Multinational Corporations
Corporations that own or control production of goods or services in one or more countries other than their home country.
- Comprehend how variations in exchange rates affect the economic decisions of multinational entities, particularly in terms of managing stock levels and evaluating financial liquidity.
Verified Answer
PR
Property Rating . PKJul 20, 2024
Final Answer :
False
Explanation :
Legal and economic differences among countries can pose significant problems for multinational corporations, such as navigating different tax laws, labor regulations, and political environments. These differences can impact decision-making, resource allocation, and profitability in the global market.
Learning Objectives
- Comprehend how variations in exchange rates affect the economic decisions of multinational entities, particularly in terms of managing stock levels and evaluating financial liquidity.