In: Economics
1) The various opportunities and threats that face multinational
corporations are almost limitless, and the number and complexity of
these factors ________ the number of products and the number of
geographic areas served.
drastically increase with
each firm has some strength and weaknesses. Similarly, it also has opportunities and threats which are considered as external factors. If the company decides to remain limited by operations and offerings then it could lose many opportunities and scalability of operations. However, if it decides to expand by offering more products and serving many markets then affecting factors increases drastically.
2) Which of the following nations has the highest corporate tax rate?
France
Asia and Europe generally rank at the top as these countries
have often very high tax rate. The corporate tax rate is highest in
the UAE. While in Europe, the highest tax rate is in Malta followed
by France.
All other countries mentioned above have a lower tax rate than that
of France.
3) Joint ventures and partnerships between domestic and foreign firms are
extremely commonplace.
A joint venture is preferred by many companies which enables two
companies to share their resources, expertise and achieve higher
quality with lower cost. The JV can be between any two or more
firms but domestic and foreign companies are suitable for JV.
The foreign company can access facilities of the domestic firm
while the domestic company can have better technology as well as
management expertise of the foreign company.
4) ________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries.
Joint ventures
A joint venture is an arrangement between 2 or more firms where they share their resources and can benefit from the expertise of each other. A firm with higher R&D expertise can thus create a JV with a firm having better distribution and marketing network and each company can benefit from this synergy. They can also get to know the corporate culture, business practices and people of each other.