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.

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Definitions:

Maximum Purchase Price

The highest price a buyer is willing to pay for an asset or property.

Pre-Merger Value

The valuation of a company or asset prior to undergoing a merger or acquisition.

Acquiring Firm

A company that purchases another company in a merger or acquisition to expand its operations or enter new markets.

Bankruptcy Judge

A judicial officer who presides over court proceedings in bankruptcy cases, making decisions on matters within the bankruptcy law.