Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 11, Problem 2Q
Nestlé S.A. is a very large company headquartered in a very small country (Switzerland). It has operations in more than 50 different countries around the world. Much of the company’s international expansion has been through the acquisition of local (i.e., foreign) companies. What problems does worldwide accounting diversity cause for a company like Nestlé?
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Students have asked these similar questions
Which of the following is NOT a reason why companies move into international operations?
a. To better serve their primary customers.
b. To take advantage of lower production costs in regions where labor costs are relatively low.
c. To increase their inventory levels.
d. Because important raw materials are located abroad.
e. To develop new markets for the firm's products.
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:
Saltwater Logistics Corp.'s domestic demand has matured and leveled off. Consequently, the firm is looking to expand its operations
overseas because it believes that its growth opportunities are more promising in foreign markets.
Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global?
To seek production efficiency
To avoid political, trade, and regulatory hurdles
To broaden its markets
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
to
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.
Chapter 11 Solutions
Advanced Accounting
Ch. 11 - Historically, what factors contributed to the...Ch. 11 - Nestl S.A. is a very large company headquartered...Ch. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 10QCh. 11 - Prob. 11QCh. 11 - Prob. 12QCh. 11 - What are the two extreme approaches that a company...Ch. 11 - Prob. 14QCh. 11 - Prob. 15Q
Ch. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 18QCh. 11 - Prob. 19QCh. 11 - Prob. 20QCh. 11 - Even if all companies in the world were to use...Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Which of the following is not a reason for...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Which of the following statements is true for a...Ch. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17P
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