Salty Lemon Manufacturers is located in Germany, a high-cost country, and its ma

Question

Salty Lemon Manufacturers is located in Germany, a high-cost country, and its managers have decided to shift some of its production facilities to Indonesia, a low-cost country, in an attempt to lower production costs Which of the following best describes the reason Salty Lemon Manufacturers has decided to go global? O To avoid political, trade, and regulatory hurdles To broaden its markets O To seek production efficiency Now consider the case of Northern Rubber Company. Many of Northern Rubber Company's customers have expanded to India. Consequently, Northern Rubber Company has decided to expand its operations to India to better serve its customers. Northern Rubber Company 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: Compared to domestic corporations, multinational corporations have complex tax laws and multiple money markets. exposure to risks that arise from

Explanation / Answer

1. to seek production efficiency
2. to broaden its markets
3. greater/more exposure to risks that arise from complex tax laws and multiple money markets

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