Question

Which one of the following is not a component of Economic Freedom? a. Open Markets b....

Which one of the following is not a component of Economic Freedom?

a. Open Markets

b. Regulatory Efficiency

c. Free and Fair Elections

d. Rule of Law

2. Presently, which of the following locations would most likely offer an MNE the highest economic freedom?

a. Bolivia

b. Hong Kong

c. Venezuela

d. North Korea

3.

Which one of the following is a centralized structure?

a. Worldwide Product Division

b. Worldwide Area Division

c. The Functional Structure

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Homework Answers

Answer #1

1.Free and fair elections is not a component of the economic freedom.

The main components of economic freedom are personal choice, voluntary exchange, freedom to compete in markets, and protection of person and property. Institutions and policies are constant with economic freedom when they allow voluntary exchange and protect individuals and their property.

2.Hong Kong

Hong Kong has the highest rating for economic freedom which points 8.97 out of 10, after which comes Singapore, New Zealand, Switzerland, Chile, the United States, Ireland, Canada, Australia, and the United Kingdom.

3.The answer is Worldwide Product Division

It is an organizational structure where centralized support functions service the needs of of different product lines. Mostly it is used by organizations whose products are similar and aimed at the same market, For example, a food company that produces frozen foods.

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