Answered Essay: Explain the barriers of corporate governance that complicate and MNC potential foreign business and aspirations.

Governance by institutional investors insures that governance is enforced among different institutional investors including those involved in pension funds, mutual funds, hedge funds, and insurance companies. Valuation for foreign targets can be affected by issues such as previous cash flows, managerial talent, economic conditions of the country, political conditions of the country, currency conditions of the country, and even stock market conditions of the country.

Summarize how MNCs use foreign targets in growing and expanding international business.

Describe the issues that affect valuation of foreign target.

Explain the barriers of corporate governance that complicate and MNC potential foreign business and aspirations.

Expert Answer


MNCs always want to expand their international business. One approach is to go with foreign direct investment where the MNCs start their business from the scratch and grow in an organic manner. The second approach is to go for portfolio investment where a company buys shares or invest in funds and increase the ownership as a part of    international business.
MNCs identify the foreign targets with following aspects:
1.   Nature and type of the business domain of the foreign targets
2.   Growth possibilities of the foreign targets
3.   Liquidity option of the investment
MNCs spread their investment in foreign target and provide funding. As a result, these targets grow and earn more profits. Since, these MNCs have invested in these targets, the MNCs also grows. Therefore, MNCs grows with their foreign investments.

Following issues affect valuations off foreign targets:
1.   Growth possibilities and potential of these targets
2.   Size of the market to whom the target is covering
3.   quality of the human resource, already owned assets and proprietary product design
4.   Size of the goodwill, brand value
Corporate governance creates following barriers:
1.   lack of transparency in the operation as well as in the acquisition can scupper the foreign investment plan
2.   Corporate governance demands compliance of laws of the land of domestic as well as overseas nation
3.   Accurate reporting on the investment and compliance of taxation rules

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.


Let us write that nagging essay.


Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.


Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.


Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.


Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?