Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: 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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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
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to
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.
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 its
home 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 another
country, and produce finished goods with labor and capital equipment from a third country.
O Multinational corporations may be owned by foreign stockholders.
Chapter 11 Solutions
Advanced Accounting (Looseleaf)
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. 5QCh. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - What are three countries that do not allow...Ch. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 11QCh. 11 - Prob. 12QCh. 11 - What are the two extreme approaches that a company...Ch. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 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. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19P
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