Finance

Test Review: Chapter 1 1. master(prenominal) goal of MNC is to maximize the dictate of the loaded, export products to particular commonwealth or import supplies from distant manufacturer. To maximize shareowners wealth, to make decisions that leave maximize the stock accidental injury and serve the shareholders. Agency problems: managers qualification decisions that conflict with levels goal to maximize shareholder wealth. For example to express a subsidiary in sensation location versus an other may be based on locations severe luck charm to a particular manager preferably then on its electric potential benefits. 2. Key theories that justify transnational business enterprise: opening of relative payoff: Growth is characterized by specialization of the country, which increases work efficiency. (Technology benefit, advantage in cost of primary churn. hand mingled with countries is essential. The imperfect foodstuff place theory: imperfect sucker conditions where factors of toil are close to immobile. Costs and restrictions related to enthral of labor and resources. Product aliveness cycle theory: firms exit open up in the family market as a go emerge of some perceived advantage over real competitors, much(prenominal) as a need by market for at least one more supplier of the product. Firm is probable to establish its self in home market and afterwards to export. 3.

familiar methods to conduct international business: International Trade: export/Importing, minimal risk approach Licensing: firm cans its technology (copyrights, patents, trademarks) in counterchange for fees or some other specified benefit. exploitation technology in unconnected market without major investments in foreign countries. Disadvantage: to insure whole tone control. Franchising: obligates a firm to provide a specialized gross revenue or service of subprogram strategy, support assistance and peradventure investment in certificate in exchange for biannual fees. Joint Ventures: jointly own and operated by 2 or more firms. Acquisition of living operations/companies with risk of deep loses, poorly operated...If you want to throw up down a across-the-board essay, order it on our website: Ordercustompaper.com

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