Question Details

A centralized management style for an MNC results in relatively high agency 



1. If a U.S. firm sets up a plant in Mexico to benefit from low cost labor, it will likely have a comparative advantage over other firms in Mexico that sell the same product.
A) True.
B) False.

2. Although MNCs may need to convert currencies occasionally, they do not face any exchange rate risk, as exchange rates are stable over time.
A) True.
B) False.

3. One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems.
A) True.
B) False.

4. A centralized management style for an MNC results in relatively high agency costs.
A) True.
B) False.

5. The imperfect markets theory states that factors of production are somewhat immobile, allowing firms to capitalize on a foreign country- resources.
A) True.
B) False.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help