What should be the primary goal of the firm? How is this goal achieved? Is this the firm’s only goal? How does this goal relate to those who interact with the company (customers, employees, etc.)? How does this goal relate to other company goals? In your responses, consider the implications of international operations.
How will increased globalization affect MRI’s financial decision making?
What major factors have helped shape the current international financial environment, and what business opportunities have they created?
MRI’s first foray into international operations was selling to overseas customers, and later this expanded to overseas production. List and explain some examples of why firms “go global.”
MRI’s transition into becoming a multinational enterprise (MNE) was a rough one. Specifically, MRI’s managers had trouble identifying the unique challenges that operating in an international environment presents. Identify some factors that distinguish multinational financial management from domestic financial management.
Define agency relationships. What agency problems can develop as a firm expands and decides to operate internationally?
Explain the importance of corporate governance and the need for managers to behave ethically.
