Which of the following is not a significant motive for the formation of multinational enterprises?
A) Avoiding tariffs by obtaining foreign manufacturing facilities
B) Obtaining the benefits from overseas comparative advantages
C) The acquisition of natural resource supply sources
D) Subsidies granted by the home government to overseas corporations

Question

Quizplus · Accepted Answer

The other options (A, B, and C) are all significant motives for the formation of multinational enterprises, as they allow the companies to increase profits, access new markets, and reduce costs. However, subsidies granted by the home government to overseas corporations are not a significant motive, as they are not widely available and may not be a sustainable source of support.

Which of the Following Is Not a Significant Motive for the Formation