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Saltwater Logistics Corp. is located in Germany, a high-cost country, and its managers have decided to shift some of its production facilities to Indonesia, a

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Saltwater Logistics Corp. is located in Germany, a high-cost country, and its managers have decided to shift some of its production facilities to Indonesia, a low-cost country, in an attempt to lower production costs. Which of the following best describes the reason Saltwater Logistics Corp. has decided to go global? To avoid political, trade, and regulatory hurdles To seek production efficiency To broaden its markets Now consider the case of Sweet Dog Manufacturing, which has decided to establish worldwide production facilities and markets to cushion itself from adverse economic conditions in any particular country, 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 money markets. exposure to risks that arise from complex tax laws and multiple

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