Firms undertake multinational operations in order to
A) hire low-wage workers.
B) manufacture in nations they have difficulty exporting to.
C) obtain necessary factor inputs.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Firms engage in multinational operations for various strategic reasons, including hiring low-wage workers to reduce costs (A), manufacturing in countries where exporting is challenging to bypass trade barriers or to be closer to the market (B), and obtaining necessary factor inputs that might be more readily available or cheaper in other countries (C). Thus, all the provided options are correct reasons for firms to undertake multinational operations.

Firms Undertake Multinational Operations in Order to