One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems.

Question

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Agency problems arise when the interests and incentives of the management of an MNC do not align with the interests of its shareholders. This can result in a conflict between short-term profitability and long-term growth, as well as a misalignment of risk-taking behavior. These issues can hinder the effective functioning and achievement of goals for an MNC.

One of the Most Prevalent Factors Conflicting with the Realization