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Ch 17: Assignment. Multinational Financial Management 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 Saltwater Logistics Corp. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global? To seek production efficiency To avoid political, trade, and regulatory hurdles To broaden its markets Now consider the case of Purple Panda Industries. Many of Purple Panda Industries's customers have expanded to India. Consequently, Purple Panda Industries has decided to expand its operations to India to better serve its customers. Purple Panda Industries has decided to go global in order to diversify 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: political risks Compared to domestic corporations, multinational corporations have increased