In Determining Why a Firm Becomes Multinational There Are Many

question 2

Multiple Choice

In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market-seeking firms produce in foreign countries?

• A) satisfaction of local demand in the foreign country
• B) to export to foreign markets
• C) political safety and small likelihood of government expropriation of assets
• D) All of the above are market-seeking activities.

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Definitions:

Wheeler-Lea Act

An amendment to the Federal Trade Commission Act in the United States, focusing on protecting consumers from deceptive and unfair business practices.

Sherman Antitrust Act

A foundational United States antitrust law passed in 1890 that prohibits monopolistic business practices, aiming to promote fair competition for the benefit of consumers.

Robinson-Patman Act

The Robinson-Patman Act is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.

Predatory Pricing

Predatory Pricing is a pricing strategy where a company sets its prices below cost to drive competitors out of the market, intending to raise prices once the competition is eliminated.