Ch 17: Assignment - Multinational Financial Management Attempts: Average: 3 1. 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 avoid political, trade, and regulatory hurdles To seek production efficiency To broaden its markets cushion itself from Now consider the case of Sweet Dog Manufacturing, which has decided to establish worldwide production facilities and markets adverse economic conditions in any particular country. Sweet Dog Manufacturing has decided to go global in order to Companies go global for various reasons. Although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: political risks. Compared to domestic corporations, multinational corporations have Grade It Now Save & Continue Continue without saving free w