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1. What is the main objective of a corporation? Why? 2. Explain the agency problem of MNCs. What are two reasons that agency costs are

1. What is the main objective of a corporation? Why?

2. Explain the agency problem of MNCs. What are two reasons that agency costs are higher for MNCs than domestic firms?

3. Why do firms pursue international business? Briefly explain each item.

4. When financing a project a firm wants to borrow in a country with a interest rate and a currency. When investing in a project, a firm wants to find a country with a interest rate and a currency.

5. Name four risks that MNC’s face.

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