Ch $18-$ Assignment $-$ Multinational Financial Management

Multinational corporations

Why do companies go global?

Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries.

Consider the following case:

RTE Telecom Inc. is an American company that produces high$-$tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations.

Which of the following best describes the reason RTE Telecom Inc. has decided to go global?

To seek production efficiency

To broaden its markets

To avoid political, trade, and regulatory hurdles

Now consider the case of Blue Box Crate Company. Many of Blue Box Crate Company's customers have expanded to India. Consequently, Blue Box Crate Company has decided to expand its operations to India to better serve its customers. Blue Box Crate Company has decided to go global in order tc