When a multinational firm expands into a country because its currency has depreciated, the firm is attempting to:
A) diversify.
B) sustain product quality.
C) increase sales to reach production capacity.
D) take advantage of lower business operations costs.

Question

Quizplus · Accepted Answer

When a multinational firm expands into a country because its currency has depreciated, it is primarily aiming to take advantage of lower business operations costs. A weaker local currency means that the firm's foreign currency can buy more in terms of assets, labor, and materials, making the cost of doing business in that country relatively cheaper.

When a Multinational Firm Expands into a Country Because Its