Salty Lemon Manufacturers 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 Salty Lemon Manufacturers 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 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 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 have risk from exchange rate Compared to domestic corporations, multinational fluctuations. Multinational versus domestic financial management According to the Bureau of Economic Analysis, the growth of capital expenses made by U.S. companies internationally was higher than the growth of investments made in domestic U.S. markets (Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2010," http://www.bea.gov/ newsreleases/international/mnc/2012/mnc2010.htm). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and firms that have international operations. Based on your understanding of the how these firms differ, identify which of the following are factors that affect multinational firms. Check all that apply cultural diversity that affects the code of conduct of businesses Country governments that comply with international protocols, making it easier for c their business in different contexts Universal business language Different currency denominations and exchange rates that affect the value of transactions s to manage used in all subsidiaries