In a free enterprise system, the overriding objective of firms wanting to invest abroad is to a. use joint production and sales distribution networks to increase revenue. b. acquire other companies. c. maximize shareholder wealth. d. make a brand name.
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- multinational enterprises are supported by strong and effective institutions to succeed in business. certainity of a business environmebt determines a firms succes. examine how the various types of institutions that reducea firms uncertainint.Can organizations survive on a specific economic view as they become involved in international business?A key driver of shareholder value is the aggregate value of the customer base. Classify the major strategies employed by winning companies to improve the value of their customer base.
- Please answer the following: Explain the importance of absolute and comparative advantage? What is the relevance of the product life cycle theory in doing international business?Define agency relationship. Briefly describe agency problems, agency costs and incentives do managers in large corporations have to maximise share value.The goal of the firm is to maximize shareholder value. Today’s business environment is unprecedented of which COVID – 19 is but one example. How do you make it sustainable in today’s business landscape?
- As for the outsourcing of multinational companies, please talk about the language and cultural differences, as well as the political risks that complicate the financial management of multinational companies.The Stakeholder Capitalism Model * has financial profit as its goal and is often termed impatient capital is the Anglo–American model of corporate governance combines the interests and inputs of shareholders, creditors, management, employees, and society clearly places shareholders as the primary stakeholder.Which of the following statements is CORRECT? a. Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. b. Corporations and partnerships have an advantage over proprietorships because a proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. c. Conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers. d. A good goal for a firm's management is the maximization of expected EPS. e. For a stock to be in equilibrium, its intrinsic value must be greater than the actual market price.
- Which one of the following is the best advice for the multinational corporation (MNC) that wants to structure an investment so as to minimize the chance that political risk events will adversely affect the firm? Group of answer choices a. Focus on the long term. b. Rely on common available supplies. c. Use local resources. d Refuse to bargain with the government.a. According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets. b. Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business? c.What advice would you give those who want to invest in this company? (recommendations) (based on profitability, productivity, leverage, disaggregation analysis)