Which of the following statements about multinational firms is NOT true?OA multinational corporation is a business firm that operates in more than one country but is headquartered or based in itshome country.O Multinational corporations are owned by domestic stockholders only.O Multinational corporations may purchase raw materials from one country, obtain financing from a capital market in anothercountry, and produce finished goods with labor and capital equipment from a third country.O Multinational corporations may be owned by foreign stockholders.

The statement that "Multinational corporations are owned by domestic stockholders only" is not true…

Answered: Which of the following statements about…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter1: Multinational Financial Management: An Overview

Section: Chapter Questions

Problem 5SBD

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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.
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. 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. с.
Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. O Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.
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”?
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.
What is a multinational corporation? Why do firmsexpand into other countries?
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.
How important of international trade (imports and exports) to the world economy? What accounting issues arise for a company as a result of engaging in international trade (imports and exports)? Why might a company be interested in investing in an operation in a foreign country (foreign direct investment)?
Which of these foreign corporations is subject to regular corporate income tax? * International carrier Offshore banking units Call center company Regional operating headquarters of a multinational company.
Match each term in Column A with its related definition in Column B. Column A 1. ____________ Maquiladora 2. ____________ Import 3. ____________ Joint venture 4. ____________ Export 5. ____________ MNC Column B a. A company that does business in more than one country in such volume that its well-being and growth rest in more than one country. b. A company purchases materials or parts from another company that is located in a foreign country. c. A company sells its product to purchasers located in foreign countries. d. A type of partnership in which investors from one country co-own the enterprise with investors from another country. e. A manufacturing plant located in Mexico that processes imported materials and reexports them to the United States.
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
. 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.…

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