The goal of an MNC is to:
A) minimize taxes on funds remitted from foreign subsidiaries.
B) establish subsidiaries in any country where operations would provide a return over and above the cost of capital, even if better projects are available domestically.
C) maximize shareholder wealth.
D) maximize the social benefits resulting from actions such as the employment of foreign managers.

Question

The goal of an MNC is to:​
A) ​minimize taxes on funds remitted from foreign subsidiaries.
B) ​establish subsidiaries in any country where operations would provide a return over and above the cost of capital, even if better projects are available domestically.
C) ​maximize shareholder wealth.
D) ​maximize the social benefits resulting from actions such as the employment of foreign managers.

Quizplus · Accepted Answer

The primary goal of an MNC is to maximize shareholder wealth, which is typically achieved by increasing profits, dividends, and share prices. While minimizing taxes may be a consideration, it is not the main objective. Establishing subsidiaries in countries where the returns exceed the cost of capital is also important, but only insofar as it contributes to maximizing shareholder wealth. The employment of foreign managers may have some social benefits, but this is not typically the primary objective of an MNC.

The Goal of an MNC Is To:​

The Goal of an MNC Is To: