1. Multinational enterprises Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply Low capital productivity Creation of subsidiaries that are independent production units Acquisitions in nonrelated markets Facilitate technology transfer by exerting competitive pressures on foreign firms Foreign sales represent a high proportion of total sales Low ratio of foreign sales to total sales Complete the following table by indicating whether each assumption is used by the multinational-enterprise a the conventional trade theory, or both. Assumption A given commodity will be produced in a lower-cost country. Sales occur between firms. Sales are determined by a competitive pricing system. MNE Analysis Aa 0 Convention Trade The

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1. Multinational enterprises
Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply
Low capital productivity
Creation of subsidiaries that are independent production units
Acquisitions in nonrelated markets
Facilitate technology transfer by exerting competitive pressures on foreign firms
Foreign sales represent a high proportion of total sales
Low ratio of foreign sales to total sales
Complete the following table by indicating whether each assumption is used by the multinational-enterprise a
the conventional trade theory, or both.
Assumption
A given commodity will be produced in a lower-cost country.
Sales occur between firms.
Sales are determined by a competitive pricing system.
MNE Analysis
Aa
Conventio
Trade The
000
Transcribed Image Text:1. Multinational enterprises Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply Low capital productivity Creation of subsidiaries that are independent production units Acquisitions in nonrelated markets Facilitate technology transfer by exerting competitive pressures on foreign firms Foreign sales represent a high proportion of total sales Low ratio of foreign sales to total sales Complete the following table by indicating whether each assumption is used by the multinational-enterprise a the conventional trade theory, or both. Assumption A given commodity will be produced in a lower-cost country. Sales occur between firms. Sales are determined by a competitive pricing system. MNE Analysis Aa Conventio Trade The 000
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