Which of the following ratios is used in the calculation of the multinationality index (MNI)?
A) Foreign working capital to total working capital
B) Foreign cash to total cash
C) Foreign employment to total employment
D) Foreign loans to total loans

Question

Quizplus · Accepted Answer

The multinationality index (MNI) measures the degree to which a firm operates internationally by looking at the proportion of foreign operations to overall operations. It is calculated as the sum of the foreign assets, foreign sales and foreign employment of a firm divided by its total assets, total sales and total employment. Therefore, the ratio used in the calculation of the MNI is foreign employment to total employment.

Which of the Following Ratios Is Used in the Calculation