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:

X-men Comic

A popular series of American comic books published by Marvel Comics, featuring a team of superheroes known as the X-Men who are born with superhuman abilities.

Lemonade Stand

A small, temporary drink stand often run by children, selling lemonade or similar refreshments, typically to learn about business and entrepreneurship.

Production Increase

A rise in the amount of goods and services produced by a company or economy.

Marginal Cost

The cost incurred by producing one additional unit of a product, reflecting how costs change with production volume adjustments.