1. Multinational corporations Aa Aa Why do companies go global? Multinational co

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1. Multinational corporations Aa Aa Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: Smith and Terry Company's domestic demand has matured and leveled off. Consequently, the firm is looking to expand its operations overseas because it believes that its growth opportunities are more promising in foreign markets. Which of the foilowing best describes the reason Smith and Terry Company has decided to go global O To broaden its markets O To avoid political, trade, and regulatory hurdles O To seek production efficiency Now consider the case of Blue Moose Producers Blue Moose Producers has dacided to establish worldwide production faclities and markets to cushion itseltf from adverse economic conditions in any particular country. Blue Moose Producers has decided to go giobal in order to retain customers diversify protoct processes and products Companies go plobal for various reasons. Althd returns and diversification, it makes financial management more complicated for financial executives and managers Based on your understanding of the factors that complicate financial management in multinational firms, the following statement provides prospects for high INS DEL BACK SPACE

Explanation / Answer

first option is correct, i.e. broden its markets

to diversify

higher political risks

option C (third) is correct

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