Question

What are two international opportunities for a Multinational Corporation (MNC) along with the benefits and concerns...

What are two international opportunities for a Multinational Corporation (MNC) along with the benefits and concerns if you are a US corporation looking to expand overseas?

What goes into the Valuation of an MNC? List and briefly discuss at least two items.

Homework Answers

Answer #2

Ans: A US corporation looking to expand overseas, I would rather say that two fascinating opportunities would be India and China. Reason being is simple, that these two countires account for almost 50% of total population present on this planet as of today. Hence these two countries offer huge demand for the products and at the same time they also offer the cost competitiveness as againbst any ther developped countries. Hence these two countries would be the favorite destination for overseas expansion for any corporation.

For valuation of any MNC the most important thing is its sales projection and its future operating profits, these two things are the two pillars which become base for any MNC's valuation. If the sales projection for any MNC is bright, it will definately cover all the expenses and will have bringht future for its stakehokders due to better operating earnings.

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