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1 year ago

In a multinational corporation (MNC) where the locus of decision making is decentralized, decisions are:

1 answer:

6 0

In a multinational corporation (MNC) where the locus of decision making is decentralized, decisions are made at the top management level.

<h3>What is multinational corporation?</h3>

multinational corporation serves as one that has different level of management.

Multinational companies are usually involvea in international trade taking into consideration the

political as well as cultural differences into account.

Examples of these corporation are:

Coca-Cola
Philip Morris's Marlboro brand
Pepsi

In this case, decisions are made at the top management level in other to achieve the goals of the organization because they do operate outside their country.

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Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result o

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Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

<h3>What are floating exchange rates?</h3>

A floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which the value of a currency is permitted to fluctuate in reaction to foreign exchange market occurrences.
A floating currency is one that uses a floating exchange rate, as opposed to a fixed currency, the value of which is determined in terms of material items, another currency, or a group of currencies (the idea of the last being to reduce currency fluctuations).
When the international value of a country's currency rises, so do its imports, and vice versa.

As it is given in the description itself, when the international value of a country's currency rises, so do its imports, and vice versa.

Therefore, Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

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The question you are looking for is here:

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will ____.

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The business structure you choose as a step for starting your new business affects the following?

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