In Determining Why a Firm Becomes Multinational There Are Many

question 28

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 safely and small likelihood of government expropriation of assets
• D) All of the above are market-seeking activities.

---

Definitions:

Present Value

The contemporary valuation of future monetary sums or cash flow streams, determined by an established rate of profit.

Compounded Annually

Compounded annually is an interest calculation method where the interest earned in one year is added to the principal, and the total becomes the basis for calculating the interest in the following year.

Present Value

The modern assessment of a future money total or cash flow sequence, applying a distinct rate of return.

Compounded Quarterly

The process whereby interest is calculated and added to the principal sum every quarter, leading to compound growth.