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Explain How the Two Opposing Forces Facing MNC Managers (Cost

question 44

Essay

Explain how the two opposing forces facing MNC managers (cost reduction and local adaptation)create pressures to operate with a global or multidomestic strategy,respectively.


Definitions:

Dividend

Funds disbursed by a corporation to its owners, often from the company's profits, as a profit sharing.

Expected Growth Rate

The predicted percentage increase in the value of an investment, asset, or economy over a certain period of time.

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Market Capitalization Rate

The expected rate of return on a portfolio consisting of all publicly traded stocks, used as a measure to value a company's stocks based on the market’s expectations of its future earnings.

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