Assume that you live in the United States and invest $100,000 to establish a computer and social media literacy business, World Technology, Inc., in Mexico City, Mexico. Although your business is structured as a corporation, you initially hold all of the common stock in the firm. Your Mexico City facility has an office and an attached training area, which you lease. You hire local individuals in Mexico who are bi-lingual in both Spanish and English to teach full-time at your training facility. Your training facility offers two types of courses: 1) A one-month structured course; and 2) a one-week intensive course. You advertise both types of courses to potential customers. All revenue and expenses associated with your business are denominated in Mexican pesos. Your subsidiary sends most of the profits from the business in Mexico to you at the end of each month. Although your expenses are somewhat stable, your revenue varies with the number of clients who sign up for the courses in Mexico. The Mexico City location of your business performs very well during its first year of operations. You then plan to expand your Mexico City business location. To fund this expansion, you sell 50,000 shares of stock in your business, World Technology, Inc., to the general public. Based on the above information, please answer the following questions: 1) Describe the type(s) of agency problems facing your business in Mexico City. a. What type of compensation plan you might be able to use for the employees at the Mexico City location to limit the potential agency problems? b. Describe the agency problem(s) created by selling stock in World Technology, Inc. to the general public. 1. How can you best deal with this agency problem? 2) Assume that you have been approached by a competitor firm in Mexico City to engage in a joint venture. The competitor would provide the facilities (so you would not need to lease space), while your employees would teach the courses. You and the competitor would split the profits. a. Describe additional agency problem(s) that may arise if this joint venture is implemented. b. How could you best deal with the additional agency problem(s) resulting from this proposed joint venture? 3) What environmental factor(s) outside the control of you or your business, World Technology, Inc. could impact its Mexico City operations? Please describe.