Which of the following is true of corporations that operate in several different countries? a. uniformity of tax-laws across different nations result in proper coordination and control of subsidiaries. b. cash flows in various parts of a multinational corporate system are denominated in one currency. c. a nation may expropriate the assets of multinational corporations without compensation. d. differences in legal systems of host nations make it easy for executives trained in one country to operate effectively in another. e. multinational corporations have the advantage of uniform attitudes toward risk taking from one country to the next.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale