Answered: 1. Multinational corporations Aa Aa Why…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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1. Multinational corporations Aa Aa Why do companies go global? Multinational corporations operate in locations across the wo

1. Multinational corporations Aa Aa 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: Salty Lemon Manufacturers'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 Salty Lemon Manufacturers has decided to go global? O To avoid political, trade, and regulatory hurdles O To seek production efficiency O To broaden its markets Now consider the case of Sweet Dog Manufacturing. Many of Sweet Dog Manufacturing's customers have expanded to India. Consequently, Sweet Dog Manufacturing has decided to expand its operations to India to better serve its customers. 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 finandial 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 Multinational versus domestic financial management According to the Bureau of Economic Analysis, the growth of capital expenses made by U.S. companies internationally was higher than the growth of investments made in domestic U.S. markets ("Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2010, http://www.bea.gov/ newsreleases/internationa l/mnc/201 2/mnc2010. htm). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and fims that international operations have Based on your understand ing of the how these firms differ, identify which of the following are factors that affect multinational firms. Check alll that apply. Universal business language used in all subsidiaries Country govemments that comply with international protocols, making it easier for corporations to manage their business in different contexts Cultural diversity that affects the code of conduct of businesses Varied tax laws that lead to different tax ramifications

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