Question Details

Which of the following is not a way in which agency problems can be reduced 



1.The Single European Act of 1987:
a.	reduced competition in most industries.
b.	eliminated competition in many industries.
c.	reduced efficiency in most industries.
d.	increased competition in most industries.

2. ____________ are most commonly classified as a direct foreign investment.
a.	Foreign acquisitions	c. Licensing agreements	Licensing agreements
b.	Purchases of international stocks	d. Exporting transactions	Exporting transactions
3.Which of the following is not mentioned in the text as a constraint interfering with the MNC goal?
a.	economic constraints.	c. regulatory constraints	regulatory constraints.
b.	environmental constraints.	d. ethical constraints	ethical constraints.

4. Which of the following is not a way in which agency problems can be reduced through corporate control?
a.	executive compensation.	c. acquisition of a foreign subsidiary	acquisition of a foreign subsidiary.
b.	threat of hostile takeover.	d. monitoring by large shareholders	monitoring by large shareholders.

5. Due to the larger opportunity set of funding sources around the world from which an MNC can choose, an MNC may be able to obtain capital at a lower cost than a purely domestic firm.
a.	true.	b. False	false.



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