After studying this chapter, you should be able to:> Identify the main goal of the MNC and potential conflicts with thatgoal> Describe the key theories that justify international business> Explain the common methods used to conduct internationalbusiness
oal of the MNC
The commonly accepted goal of an MNC is to maximizeshareholder wealth. Developing a goal is necessary because alldecisions should contribute to its accomplishment. Thus, if theobjective were to maximize earnings in the near future, rather thanto maximize shareholder wealth, the firm·s policies would bedifferent.