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malfutka [58]
1 year ago
13

which type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate

goods going into the production of finished goods?
Business
1 answer:
slavikrds [6]1 year ago
7 0

Vertical integration type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate goods going into the production of finished goods.

One method of reinvestment is diversification. A global corporation can add new revenue streams, ideally with high-profit potential, by purchasing new businesses and corporate divisions, frequently in markets with growth potential or in new markets. There are two aspects to the justification for diversification, according to Calori and Harvatopoulos (1988). First, diversification can be either defensive or aggressive depending on the nature of the strategic objective.

Spreading the risk of market contraction or being compelled to diversify when an existing products or present market direction appears to offer no more prospects for growth may be defensive considerations. Gaining new positions, seizing possibilities that offer higher profitability than those for expansion, or utilizing financial reserves over the whole amount required for expansion are all offensive motivations.

Learn more about diversification here: brainly.com/question/18647091

#SPJ4

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The correct answer is  a. an inadequate infrastructure.

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Which of the following is the correct term to
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A company has the following balances on December 31, 2018, after year-end adjustments: Accounts Receivable = $62,500; Allowance
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Answer:

the net realizable value of accounts receivable $56.300

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To calculate the net realizable value of accounts receivable is necessary to deduct from Account Receivable the total credit amount of the Allowance for Uncollectible Accounts.

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8 0
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4 0
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4 years ago
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