Explain the main reasons why multi-national companies (MNC) seek foreign investment.

Advanced Financial Management Block Revision Mock Exams

Reasons for foreign investment MNC.
• To seek new markets for their products
• To seek growth opportunities outside their home markets
• To take advantage of tax incentives offered in other countries
• To avoid regulatory and political bottlenecks in their home country
• To diversify their operations and reduce their overall risk
• To seek new technology in form of scientific ideas for design of their products and services
• Increase production efficiency moving to countries with low production costs.

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