Agency Problems Of Mncs.

16. Which of the following can induce a firm to expand into the international arena?

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ____ structure.

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

The foreign partner can also become a competitor by selling its production in places where the parental company is already in.

D. It would probably see no change in its revenue position as its competitors would raise their prices accordingly.

B. Compare U.S. business practices to practices in your proposed country for each of the following: Product, Price, Promotion and Place The marketing mix should be taken into consideration as Company X considers expansion int the China market. It is important to

II. Assess the legal implications of moving business abroad specific to your chosen country. What are the advantages and disadvantages?

a. According to the textbook, the reasons that provide motivation for companies’ international expansion and describe them.

Which of the following reasons for diversification is most likely to increase the firm’s value? a. increasing managerial compensationb. reducing costs through business restructuringc. taking advantage of changes in tax lawsd. conforming to antitrust regulation

d. Does the firm appear to have an effective corporate governance structure? Explain any shortcomings.

Conflicts between stockholders and creditors Conflict between shareholders and creditors is common for the company which use debt capital to form an optimum capital structure. As mentioned earlier, agency relation exist when one party works as an agent of the principal. In an organization management

Perfect competition: in this competition, no participant dominates the market thus; no specific seller has the power to set the prices of homogeneous goods. This therefore makes the conditions of a perfect competitive market stricter than the rest of the market structures. In this market, AT&T should be willing to sell their services in a certain price that reciprocates to their demand to maximize profits.

The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,

A perfect competition structure has zero entry barriers with a lot of firms. This means it has a large number of competitors, with

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.