Management Contracts Are Used in International Dealings

Multiple Choice

Management contracts are used in international dealings

A) as a way in which an MNC may contract with a foreign government or local firm to trade raw materials for certain resources belonging to the MNC.
B) as a way in which an MNC can take total control of operations by either starting a business from scratch or acquiring a firm already established in the host country.
C) when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire a workforce.
D) when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time.
E) when an MNC typically contracts for construction of operating facilities in exchange for a fee.