Goal of an mnc - Study guides, Class notes & Summaries

INST 335 Organizational ecosystem An organizational ecosystem is a system formed by the interaction among a community of organizations in the environment. The ecosystem includes the task (customers, competitors, suppliers) and general environments (sectors that have an indirect influence on the organization- technology, politics, international laws) Corporate culture Corporate culture: set of key values, beliefs, understandings, and norms that members of an organization share: Symbols, Sto...

Chapter 1—Multinational Financial Management 1. The commonly accepted goal of the MNC is to: a. maximize short-term earnings. b. maximize shareholder wealth. c. minimize risk. d. A and C. e. maximize international sales. ANS: B PTS: 1 2. With regard to corporate goals, an MNC is mostly concerned with maximizing ____, and a purely domestic firm is mostly concerned with maximizing ____. a. shareholder wealth; short-term earnings b. shareholder wealth; shareholder wealth c. short-term...

INST 335 Organizational ecosystem An organizational ecosystem is a system formed by the interaction among a community of organizations in the environment. The ecosystem includes the task (customers, competitors, suppliers) and general environments (sectors that have an indirect influence on the organization- technology, politics, international laws) Corporate culture Corporate culture: set of key values, beliefs, understandings, and norms that members of an organization share: Symbols, Sto...

6. The goal of a multinational corporation is the maximization of shareholder wealth a) True b) False a) True 7. Locational arbitrage explains why spot exchange rates among banks at different locations normally will not differ by a significant amount a) True b) False a) True 8. In determining the valuation of foreign projects, an MNC will always use the same required rate of return as it would for its domestic projects a) True b) False b) False 9. The ______ hedge i...

FIN 582 Exam 1 Questions and Answers All Correct Theory of Competitive Advantage: - Answer-specialization increases production efficiency Imperfect Markets Theory: - Answer-factors of production are somewhat immobile providing incentive to seek out foreign opportunities Product Cycle Theory: - Answer-as a firm matures, it recognizes opportunities outside its domestic market How firms engage in international business: - Answer-1. international trade (easiest) 2. licensing 3. franchisi...

6. The goal of a multinational corporation is the maximization of shareholder wealth a) True b) False a) True 7. Locational arbitrage explains why spot exchange rates among banks at different locations normally will not differ by a significant amount a) True b) False a) True 8. In determining the valuation of foreign projects, an MNC will always use the same required rate of return as it would for its domestic projects a) True b) False b) False 9. The ______ hedge i...

Chapter 03 Ethics, Social Responsibility, and Sustainability True/False Questions 1. The study of morality and standards of conduct is referred to as ethics. Answer: True Feedback: Ethics is the study of morality and standards of conduct. AACSB: Analytic AACSB: Ethics Bloom's: Remember Learning Objective: 03-01 EXAMINE ethics in international management and some of the major ethical issues and problems confronting MNCs. Level of Difficulty: 1 Easy Topic: Ethics and Social Re...

111 Solved MCQs of Financial Management MGT201 (The answers in RED are Correct) 2023 Edition. BEST OF LUCK 1- is concerned with the acquisition, financing, and management of assets with some overall goal in mind. • Financial Management • Profit Maximization • Agency Theory • Social Responsibility. 2- is concerned with the maximization of a firm's earnings after taxes. • Shareholder wealth maximization • Profit maximization • Stakeholder maximization •...

FIN 582 Exam 1 Questions and Answers All Correct Theory of Competitive Advantage: - Answer-specialization increases production efficiency Imperfect Markets Theory: - Answer-factors of production are somewhat immobile providing incentive to seek out foreign opportunities Product Cycle Theory: - Answer-as a firm matures, it recognizes opportunities outside its domestic market How firms engage in international business: - Answer-1. international trade (easiest) 2. licensing 3. franchisin...

1. The commonly accepted goal of an MNC is to: a. maximize short-term earnings. b. maximize shareholder wealth. c. minimize risk. d. maximize short-term earnings AND minimize risk. e. maximize international sales. ANSWER: b 2. With regard to corporate goals, an MNC is mostly concerned with maximizing ____, and a purely domestic firm is mostly concerned with maximizing ____. a. shareholder wealth; short-term earnings b. shareholder wealth; shareholder wealth c. short-term earnings; sal...