Social Science

Wednesday, July 14, 2010

Please help me with this Economic/ Business question?

1. What impression do you have of multinational firms that have operations in multiple countries?

2. What is the effect of a country devaluing its currency (like China, for example)?
1) Firms operating in multiple countries are seeking to expand in various markets. If the good or service the firm provides has limited substitutes, this will allow them to become monopolists in more than one market. Also, operating overseas can lessen tax burdens and lower labor costs, thus a firm operating in a different country may be seeking to lower costs.

2) Some effects of devaluing a country

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Social Science

social Science