From the standpoint of management control three topics are unique to multi-national enterprises (MNE's): differences, transfer pricing, and exchange rates. In addition to goal congruence other important rations would include government regulations, tariffs, foreign exchange controls, funds accumulation and joint ventures." In terms of the evaluation of the performance of subsidiaries, (located in countries and jurisdictions different from that of the parent entity, and the managers of these subsidiaries, discuss in detail the implications and/or impact of the issues identified in the statement above. Your answer should include (but not limited to) the negative and positive consequences of various economic exposures, the impact of cultural differences, the impact on and impact of transfer pricing arrangements. One of the key issues associated with management control is the alignment of the organization's interests with those of the management of the organizations (goal congruence). Normally, this is achieved with a compensation plan that rewards executive management for good financial performance. Agency Theory explores how and incentives can be created to motivate individuals to achieve goal congruence. Other theories related to the issue of motivation include Hertzberg's Hygiene Factors and Expectancy Theory. In this context, discuss the following statement. Managers should rewarded only on the basis of their performance measures. In other words they should not be paid a fixed form or other fixed non-financial rewards. The manage remuneration should be in a that directly reflects the performance of the economic unit they are responsible for'. Your discussion should include (but not be limited to) whether you agree (or disagree) with the statement and why: and a summary of the motivation theories indicated in the preamble to the question (above): and how these theories relate to this particular statement