List and explain three strategic motives why firms become multinationals and give an example of each
What will be an ideal response?
Answer: The authors provide 5 strategic motives for firms to become multinationals: market seekers, raw materials seekers, production efficiency seekers, knowledge seekers, and political safety seekers. Market seekers are looking for more consumers for their products such as automobiles, or steel. Knowledge seekers may be looking for an educated workforce similar to the way firms seeking R and D set up shop in university towns. Raw materials seekers may be after commodities such as oil or copper. Production efficiencies may occur in countries like Mexico that have capable workers and lower wages. Political safety seekers are looking for countries that will not expropriate their assets, so they may stay away from countries that in the post have engaged in such activities.
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Which of the following are considered to be legal entities that exist separate and distinct from their owners?
a. sole proprietorships b. partnerships c. corporations d. organizations with more than 100 partners
If the existing product is being sold to teenagers in one country and new entry involves selling the existing product to teenagers in a new country then this represents a new product use.
Answer the following statement true (T) or false (F)
A popular television show, The Unexpected, achieved skyrocketing ratings after moralist Tom Bowman attempted to have it removed from the air. This is an example of mass selling through
A. unethical means. B. advertising. C. media hype. D. personal selling. E. publicity.
The internal rate of return may be defined as the:
A) percentage increase in the value of an investment over its useful life. B) the minimum return required by investors to hold a firm's securities. C) the discount rate at which a project's NPV is negative. D) the discount rate at which a project's NPV equals zero. E) the maximum rate of return expected from a project.