Chapter 8: International Economics: Basic Theory and Core Institutions

Outcome:

Your staff alerts the President and begins deliberations to determine the details of the fixed exchange rate: what the rate will be, what currency it will be fixed with respect to, and so forth. Next on the agenda: what will your policy toward multinational enterprises be?

What do you do now?


Allow multinational enterprises to branch into AbkhaziaThese will be a boon to your economy. They will bring new industries in, an influx of capital, and the attention of international investors.
Prevent multinational enterprises from doing business in AbkhaziaFocus on domestic companies. International companies will take business from upstart Abkhazian companies and weaken the economy.