After studying this chapter, you should be ableto:
> Identify the main goal of the MNC and potentialconflicts with that goal> Describe the key theories that justify internationalbusiness> Explain the common methods used to conductinternational business
Goal of the MNC
The commonly accepted goal of an MNC is to maximizeshareholder wealth. Developing a goal is necessarybecause all decisions should contribute to itsaccomplishment. Thus, if the objective were tomaximize earnings in the near future, rather than tomaximize shareholder wealth, the firm’s policies wouldbe different.