Question
Describe various reasons which help a firm to become transnational.
Answer :
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Skip in 10
The firms become transnational due to number of reasons. The major reasons are discussed
below:
i) To protect themselves: The firms are exposed to the risks and uncertainties of the
domestic business cycle. By setting up operations in another country, they can often
diminish the negative effects of economic swings in the home country.
ii) To tap the growing world market: As a result of globalization, the rapid growth of
similar goods and services are produced and distributed by
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