QUESTION 6

What are the reasons that agency costs are normally higher for MNC than for purely domestic firms?

		this is not true because small size of subsidiaries of a large MNC can create small agency problems.
		because of distant subsidiaries in foreign countries
		most of the managers tend to overreact to the short-term issues in agency problems when refers to a subsidiary, and then the agency cost of monitoring is increased.
		ethics generated by different cultures