Individuals and groups with large quity holdings of an MNC may have influence to remove managers who do not make decisions that maxime the tock price of the MNC This is an example at control of agency problems Undere centralite management style, the MNC parent managers usually make more informed local business decisions than the manager of the TE Theory of Comparative Advantage Imperfect Markets Theory Product Code Theory O The theory that countries are better off by specializing in the production of a particular good, while trading for other necessary goods. The theory that costs for factors of production vary across countries, due to the immobility of these resources The theory that a firm first produces goods domestically, then exports to foreign markets, then establishes its own foreign operations. O Suppose that California Co., a US-based MNC that sells clothing domestically owns a subs.diary in Mexico that handles the manufacturing of their products. California Co., has chosen to have a subsidiary in Mexico due to their relative strengths in making clothing by hand, California Co, on the other hand, focuses their efforts on the digital marketing and technological side of the business. This reasoning for expanding their business international is best explained by the