1. Which of the following is true of corporations that operate in several different countries?
A. Differences in legal systems of host nations make it easy for executives trained in one country to operate effectively in another.
B. Uniformity of tax-laws across different nations result in proper coordination and control of subsidiaries.
C. Multinational corporations have the advantage of uniform attitudes toward risk taking from one country to the next.
D. A nation may expropriate the assets of multinational corporations without compensation.
E. Cash flows in various parts of a multinational corporate system are denominated in one currency.
2. Last year ACME Toys’ forty (40) production employees produced 12000 drones at the direct manufacturing cost (direct labor + direct materials + factory overhead) of $3,000,000. The direct labor costs were 30% and the direct material costs were 60% of this cost. What level of multifactor productivity improvement should ACME Toys Inc. have this year to meet its 25% increase in the product demand, assuming that its factory overhead costs remain constant?
A) 1%
B) 2%
C) 10%
D) 20%
E) 25%