An MNE would most likely employ a host-country national when ________.
A) it has substantial knowledge regarding upstream value-chain activities
B) it emphasizes R&D and manufacturing
C) it wants to maintain strong control over local operations
D) it needs specialized knowledge about the local market
Question 2
Which of the following, if true, supports Intensity raising funds through intracorporate financing to expand its Chinese facility?
A) Intensity would save money on transaction fees and tax deductible interest payments.
B) Intensity's subsidiaries are struggling due to price wars with video game competitors.
C) The Chinese government has offered Intensity a low-interest loan for the expansion.
D) Eurobonds have been a popular choice among MNEs with facilities in China.
