In Determining Why a Firm Becomes Multinational There Are Many

question 26

Multiple Choice

In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a raw material seeker. Which of the following is NOT a reason why raw material seeker extract raw materials in foreign countries?

• A) They extract raw materials wherever they can be found to export from the host country.
• B) They extract raw materials wherever they can be found for sale in the host country.
• C) They extract raw materials wherever they can be found for further processing in the host country.
• D) All of the above.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, reflecting a company's investment strategy.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity, including issuing debt, equity transactions, and paying dividends.

Direct Approach

A method of preparing the statement of cash flows where major categories of gross cash receipts and payments are reported.

Indirect Approach

A method of communication or problem-solving that is not straightforward, often involving suggestion or implication rather than direct statements.