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:

Magnuson-Moss Act

The Magnuson-Moss Act is a federal law aimed at protecting consumers from deceptive warranty practices, requiring warranties to be clear and comprehensive.

Defective Part

A component or piece of a larger item that has a flaw or imperfection, rendering it unfit for its intended use.

Implied Warranty

A legal guarantee that the goods being sold will be functional and meet certain standards of quality and reliability, even if not explicitly stated.

Warranty Of Fitness

This refers to a seller's promise that the goods sold will be suitable for the purpose for which they are bought.