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:

Reactance Theory

The idea that people are distressed by loss of freedom or options and seek to reclaim or reassert them.

Self-determination Theory

A theory of motivation concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways.

Autonomy

The capacity and right of individuals to make their own choices and decisions independently, free from external control or influence.

Freedom

The authority or freedom to behave, communicate, or consider ideas freely, without any limitations or restrictions.