a. Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems.

b. How would you attempt to monitor the ongoing operations of the business?

c. Explain how you might be able to use a compensation plan to limit the potential agency problems.

d. Assume that you have been approached by a competitor in Mexico to engage in a joint venture. The competitor would provide the classroom facilities (so you would not need to rent classroom space), while your employees would teach the classes. You and the competitor would split the profits. Discuss how your potential return and your risk would change if you pursue the joint venture.

e. Explain the conditions that would cause your business to be adversely affected by exchange rate movements.

f. Explain how your business could be adversely affected by political risk.