1. multinational corporations why do companies go global? multinational corporations operate in locations across the world. each company has its own motive for its presence in different countries. consider the following case: smith and terry company is an american company that produces high-tech electronics. its managers have decided to move some of its production facilities to japan in an attempt to circumvent certain governmental regulations. which of the following best describes the reason smith and terry company has decided to go global? to broaden its markets to seek production efficiency to avoid political, trade, and regulatory hurdles now consider the case of blue moose producers. to conceal its trade secrets, blue moose producers has decided to invest abroad instead of licensing to local foreign firms. blue moose producers has decided to go global in order to . companies go global for various reasons. although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: compared to domestic corporations, multinational corporations have political risks.