1. Multinational corporations Aa Aa 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: RTE Telecom Inc.'s domestic demand has matured and leveled off. Consequently, the firm is looking to expand its operations overseas because it believes that its growth opportunities are more promising in foreign markets. Which of the following best describes the reason RTE Telecom Inc. has decided to go global? O To avoid political, trade, and regulatory hurdles To broaden its markets O To seek production efficiency Now consider the case of Sweet Dog Manufacturing To conceal its trade secrets, Sweet Dog Manufacturing has decided to invest abroad instead of licensing to local foreign firms. Sweet Dog Manufacturing 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: Compared to domestic corporations, multinational corporations have political risks