In Determining Why a Firm Becomes Multinational There Are Many

question 42

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) satisfaction of local demand in the domestic 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:

Salomon v. Salomon

A foundational company law case from the UK, establishing the principle that a corporation has a separate legal personality, distinct from its shareholders.

Secured Creditor

A creditor that has a legal claim, or lien, on collateral that secures loan repayment.

Legal Entity

An organization or individual with legal rights and obligations, like a corporation or partnership.

Personal Guarantee

A guarantee of payment for another’s obligation.