Management contracts are used in international dealings: A) as a way in which an MNC may contract with a foreign government or local firm to trade raw materials for certain resources belonging to the MNC.

The correct answer is (D) when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time. Management contracts are agreements between two parties where one party provides management services to the other in exchange for a fee. In international dealings, an MNC may use management contracts as a way to leverage its highly skilled management personnel to assist a firm in a host country. This allows the MNC to share its expertise and knowledge while also generating revenue from the management services provided. The contract typically specifies the length of the agreement and the fee paid to the MNC for its services. This type of arrangement can be mutually beneficial for both parties involved, as the MNC gains revenue and the host country firm gains access to valuable management expertise.