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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. 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 seek production efficiency To avoid political, trade, and regulatory hurdles O To broaden its markets Now consider the case of Blue Moose Producers. To conceal its trade secrets, Blue Moose Producers has decided to invest abroad instead of licensing to local foreign firms. Blue Moose Producers 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: exposure to risks that arise from complex tax laws and multiple Compared to domestic corporations, multinational corporations have money markets.
An exchange rate is the price of one country's currency expressed in another country's currency. 5 The exchange rates of the euro (€) and the Japanese yen (¥) relative to the U.S. dollar ($) are listed as follows: Spot Rate Euro € 0.6069 / $1 Yen X 105.7800 / $1 terms, the foreign exchange rate represents the number of American dollars that can be purchased When exchange rates are stated in with one unit of domestic currency. Given the exchange rate data above, how many yen (¥) can one euro (€ 1) purchase? O x 200.45 O X 174.30 O * 191.73 O X 139.44 The foreign currency price of one unit of the home currency is called quotation.
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