Chapter 01

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Unformatted text preview: CHAPTER 1 Multinational Financial Management: An Overview 1 Chapter Overview A. Managing the MNC B. Why Firms Pursue International Business C. How Firms Engage in International Business D. Valuation Model for an MNC 2 Chapter 1 Objectives This chapter will: A. Identify the management goal and organizational structure of the Multinational Corporation (MNC). B. Describe the key theories that justify international business C. Explain the common methods used to conduct international business D. Provide a model for valuing the MNC 3 Insert chart from page 2 4 A. Managing the MNC 1. Management and Agency Problems a. Parent Control b. Corporate Control 1.) How Sarbanes­Oxley (SOX) Improved MNCs Corporate Governance 5 A. Managing the MNC 2.) Common Methods to Improve Control • • • • • Establishing a centralized database of information Ensuring that all data are reported consistently among subsidiaries Implementing a system that automatically checks data for unusual discrepancies Speeding the process by which all departments and subsidiaries have...
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This note was uploaded on 12/30/2010 for the course MBA FI565 taught by Professor Benard during the Spring '10 term at Keller Graduate School of Management.

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