Which of the following statements best differentiates multinational firms from domestic firms? Multinational firms have overseas sales offices. b. Multinationals engage in both importing and exporting. Multinational firms have one or more plant(s) in a foreign country. d. Multinational business people make use of worldwide sales, capital, and labor markets. а. с.

Which of the following statements best differentiates multinational firms from domestic firms? Multinational firms have overseas sales offices. b. Multinationals engage in both importing and exporting. Multinational firms have one or more plant(s) in a foreign country. d. Multinational business people make use of worldwide sales, capital, and labor markets. а. с.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter1: Multinational Financial Management: An Overview

Section: Chapter Questions

Problem 13QA

See similar textbooks

Similar questions

Which of the following statements best differentiates multinational firms from domestic firms? a. Multinational firms have overseas sales offices. b. Multinationals engage in both importing and exporting. c. Multinational firms have one or more plant(s) in a foreign country. d. Multinational business people make use of worldwide sales, capital, and labor markets.
a. According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets. b. Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business? c.
a. Discuss factors that distinguish multinational financial management from financial management as practiced by a purely domestic firm; and b. Identify for corporations to build manufacturing plants abroad when they can build them at home country
Which one of these represents the most basic level of international participation by a business entity? Multiple choice question. Operating a single retail store in a singe foreign country Producing a single product in a foreign-built facility Importing and exporting goods and services Operating multiple facilities in various countries to spread risk
Businesses that operate in more than one country are commonly referred to as . A. multi-American firms B. multinational firms C. ultranational firms D. worldwide firms
Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the North America region. Examine issues related to foreign exchange management within your multinational corporation. The type of MNC, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given. The main foreign currencies that will be used in the business. The foreign exchange exposure of the company and how the company plans to manage this exposure.
. What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method. 1. What is the difference between a monochronic and a polychronic culture? How do such cultural differences affect business practices for international firms? 2. What is gross national income? How is it calculated? Illustrate your answer with a specific example. 1. What are the disadvantages of import restrictions in regard to creating domestic employment opportunities? 2. What is value chain configuration? Briefly list and discuss the factors that influence value chain configuration. 1. What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions? 2. Explain how franchising agreements differ from licensing agreements. 1. Compare push and pull promotional strategies in the context of international business.…
Increased global interaction has been promoted by advanced technology in communication, ideas and culture, which largely encourages and facilitates international trading. Businesses go abroad in seeking better financial incentives, stronger networks, and markets of opportunities. But at the same time, the complexities in terms or risks involved in international operation are more than domestic firms. Respond to the following in a minimum of 175 words: Discuss how to manage cultural risks and other factors related to a foreign operation of a multinational business. Is cultural, business, or political risk more challenging to overcome than one of the others? Why or why not? How should American standards influence multinational businesses?
Explain the role of private multinational corporations (MNCs) in foreign direct investment indeveloping countries. In your answer:• Describe what a multinational corporation is, with specific reference to their most commoncharacteristics.
Reasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local ing-hiet equatitions
How is multinational financial management different from financial management as practicedby a firm that has no direct contacts with foreignfirms or customers? What special problems andchallenges do multinational firms face? Whatfactors cause companies to “go multinational”?
Assume that an U.S. firm wants to engage in international business without making a major investment in the foreign country. Which method is LEAST appropriate in this situation? A. licensing B. acquisition of an existing firm in the foreign country C. exporting D. franchising