1.Firm are becoming multinational due to following reasons-

A. Firm are engaging into multinational activities because it will be helping them in expanding their business to the other markets.

B. firm are also becoming multinational because it will be helping them to raise the capital for the business from different markets all across the world and gain on the lower exchange rate and the lower interest rate.

C. firm are also going International because they want to acquire the other smaller companies in other countries and they will be trying to gain additional market share.

D. firn are also going multinational because it will be helping them in order to outsource their business activities to different other Nations and engage in business outsourcing.

E. firm are also going International in order to increase their business reputation and gain popularity all across the globe.

F. firm are going International in order to diversify their products because diversification will be helping them in order to maximize their competitive abilities.

H. firm are going multinational in order to reduce their cost because there are various countries which are offering lower cost for manufacturing like Chinese country.

If I have to provide an example for company going multinational, then it would be Apple who has started its manufacturing plant in China in order to cut its cost of production and gain various kind of subsidies from Chinese government.

Similarly, Tata motors acquired Jaguar and Range rover in order to have an international reputation and increase its market share all across the globe.

2.

Theory of Comparative Advantage -

• Comparative advantage refers to an economy's ability to produce goods and services at a lower opportunity cost than its trade partners.
• The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
• Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in.
• Absolute advantage refers to the uncontested superiority of a country to produce a particular good better.

2) Imperfect Market Theory -

• Imperfect markets do not meet the rigorous standards of a hypothetical perfectly or purely competitive market.
• Imperfect markets are characterized by having competition for market share, high barriers to entry and exit, different products and services, and a small number of buyers and sellers.
• Perfect markets are theoretical and cannot exist in the real world; all real-world markets are imperfect markets.
• Market structures that are categorized as imperfect include monopolies, oligopolies, monopolistic competition, monopsonies, and oligopsonies.

3) Product Cycle Theory

• A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves.
• There are four stages in a product's life cycle—introduction, growth, maturity, and decline.
• The concept of product life cycle helps inform business decision-making, from pricing and promotion to expansion or cost-cutting.
• Newer, more successful products push older ones out of the market.

3.

In this question we need to calculate the fall in price of frozen orange juice future in cents per pound which leads to margin call..

Each contract is of 15000 pounds

Initial margin is $7020 per contract and the maintenance margin is $ 5520 per contract. Therefore margin call will be made when the margin comes below $ 5520 per contract.

Minimum Fall in the future price required to make margin call = $7020 - $ 5520 = $ 1500 per contract.

This 1500$ contains 150000 cents and it is for the total 15000 pounds.

Therefore per pound fall in price = 150000 cents / 15000 pounds = 10 cents per pound.

Hence if the future price of frozen orange juice falls by more than 10 cents per pound then the margin call will be made..