In Determining Why a Firm Becomes Multinational There Are Many

question 42

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

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Definitions:

Laws

Rules and guidelines, established by a community or authority, governing behavior.

Static

Persistent or unchanging conditions; in electronics, it refers to random noise that can interfere with signal clarity.

Stability

The state or quality of being resistant to change, especially sudden change or deterioration, within a particular environment or context.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.