Question

Why do firms become multinational. Support with few examples of firms doing multinational and the reasons.
note:no plagiarism

Answer 1

Firm are becoming multinational due to following reasons-

A. Firm are engaging into multinational activities because it will be helping them in expanding their business to the other markets.

B. firm are also becoming multinational because it will be helping them to raise the capital for the business from different markets all across the world and gain on the lower exchange rate and the lower interest rate.

C. firm are also going International because they want to acquire the other smaller companies in other countries and they will be trying to gain additional market share.

D. firn are also going multinational because it will be helping them in order to outsource their business activities to different other Nations and engage in business outsourcing.

E. firm are also going International in order to increase their business reputation and gain popularity all across the globe.

F. firm are going International in order to diversify their products because diversification will be helping them in order to maximize their competitive abilities.

H. firm are going multinational in order to reduce their cost because there are various countries which are offering lower cost for manufacturing like Chinese country.

If I have to provide an example for company going multinational, then it would be Apple who has started its manufacturing plant in China in order to cut its cost of production and gain various kind of subsidies from Chinese government.

Similarly, Tata motors acquired Jaguar and Range rover in order to have an international reputation and increase its market share all across the globe.