The MNE would prefer to leave capital with a firm in a country with high growth prospects over the alternative of leaving capital with a firm in a country with low growth prospects (other factors equal).

Question

Quizplus · Accepted Answer

This statement is true as higher growth prospects generally lead to higher returns on investments, making it more attractive for MNEs to leave capital with firms in those countries.

The MNE Would Prefer to Leave Capital with a Firm