List and Explain Three Strategic Motives Why Firms Become Multinationals

question 65

Essay

List and explain three strategic motives why firms become multinationals and give an example of each.

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Definitions:

Deferred Tax Liability

A tax obligation that arises from temporary differences between the book value and tax value of assets and liabilities, to be paid in the future.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over the asset's useful life.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Tax Purposes

Refers to the reasons or contexts in which financial and operational information is gathered and analyzed to comply with tax laws and regulations.