In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market-seeking firms produce in foreign countries?
A) satisfaction of local demand in the foreign country
B) to export to foreign markets
C) political safety and small likelihood of government expropriation of assets
D) All of the above are market-seeking activities.

Question

Quizplus · Accepted Answer

Political safety and small likelihood of government expropriation of assets are typically cited as reasons for resource-seeking firms to invest in foreign countries, not market-seeking firms. Market-seeking firms produce in foreign countries to satisfy local demand or to export to foreign markets. Therefore, option C is NOT a reason why market-seeking firms produce in foreign countries.

In Determining Why a Firm Becomes Multinational There Are Many