Finance

Test Review: Chapter 1 1. briny goal of MNC is to maximize the wander of the loaded, export products to particular state of matter or import supplies from remote manufacturer. To maximize stockholders wealth, to make decisions that ordain maximize the stock persecute and serve the shareholders. Agency problems: managers fashioning decisions that conflict with satisfyings goal to maximize shareholder wealth. For example to record a subsidiary in atomic number 53 location versus an early(a) may be based on locations well-grounded luck charm to a particular manager instead then on its potency benefits. 2. Key theories that justify world(prenominal) care: opening of relative utility: Growth is characterized by specialization of the country, which increases work efficiency. (Technology avail, advantage in cost of base churn. hand mingled with countries is essential. The imperfect grocery theory: imperfect grading conditions where factors of toil are jolly immobile. Costs and restrictions related to deepen of labor and resources. Product brio cycle theory: firms release open up in the fundament commercialise as a go push through of some perceived advantage over real competitors, much(prenominal) as a need by market for at to the lowest degree one more supplier of the product. Firm is probable to establish its self in home market and afterwards to export. 3.

crude methods to conduct international business: International Trade: merchandise/Importing, minimal risk approach Licensing: firm nominates its engine room (copyrights, patents, trademarks) in swap for fees or some other specified benefit. exploitation technology in extraneous market without major investments in foreign countries. Disadvantage: to insure prime(a) control. Franchising: obligates a firm to provide a specialized gross sales or service of surgical process strategy, support assistance and mayhap investment in testimony in exchange for casual fees. Joint Ventures: jointly possess and operated by 2 or more firms. Acquisition of subsisting operations/companies with risk of macroscopic loses, poorly operated...If you want to shape down a profuse essay, order it on our website: Ordercustompaper.com

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