Question

"Holly, Inc. is a U.S.-based MNC contemplating the acquisition of a Thai firm which will be used to produce computers that will be sold in Thailand. Molly, Inc. is a U.S.-based MNC contemplating the acquisition of a Thai firm which will be used to export computers to Europe. ________ is probably ________ sensitive to economic conditions in Thailand."

a. Holly; less
b.Molly; less
c. Holly; more
d. Molly; more
e. None of these choices are correct.

Answer 1

Holly; more

Step-by-step explanation:

In this secanrio we have two firm Holly Inc and Molly inc. Holly inc is interested in acquiring a company in Thailand that produces computers and sells them within Thailand.

Molly Inc on the other hand wants to acquire a Thailand company that will produce computers and export them.

Holly Inc is more sensitive to the economic conditions of Thailand because they want to contribute to the country's GDP and growth by selling computers in Thailand.

Molly Inc however is using Thailand for its production and exporting the computers. It does not contribute to the Thailand economy.