Assignment 17- Multinational Financial Management Due on Dec l1at 11 PM EST Mult
ID: 2798884 • Letter: A
Question
Assignment 17- Multinational Financial Management Due on Dec l1at 11 PM EST 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, is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global? O To avoid political,trade, and regulatory hurdles To seek production efficiency O To broaden its markets Now consider the case of Sweet Dog Manufacturing, which has decided to establish worldwide production facilities and markets to cushion itself from adverse economic conditions in any particular country. 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 financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: Compared to domestic corporations, multinational corporations have complex tax laws and multiple money markets. exposure to risks that arise from lype here to search 0Explanation / Answer
a.
Saltwater logistic company wants to establish one facility in Japan because of production efficiency and broaden its market based.
Option (B) and (C) is correct answer.
b.
Sweetdog manufacturing decided to go global in order to diversified the risk. by establishing manufacturing facility in different country in world helps the company in reduction risk assiciated with any one part of the world.
c.
Multinational companies have Translation exposure that arise from complex tax law and multiple money market