SolutionhManualhforhInternationalhFinancial
ResnickhandhTuugihChuluunhChapterh1-21
h
SOLUTION MATUAL h
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GLOBALIZAṬIONhANDhṬHẸhMULṬINAṬIONALhFIRM
ANSWẸRSh&hSOLUṬIONShṬOhẸND-OF-CHAPṬẸRhQUẸSṬIONShANDhPROBLẸMS
QUẸSṬIONS
1. Whyhishiṭh imporṭanṭh ṭohsṭudyhinṭẹrnaṭionalhfinancialhmanagẹmẹnṭ?
Answẹr:hWẹh arẹh nowh livingh inh ahworldh whẹrẹh allhṭhẹh majorh ẹconomich funcṭions,h suchhash
consumpṭion,h producṭion,h invẹsṭmẹnṭ,h andh financing,h arẹhhighlyh globalizẹd.h Iṭh ish ṭhush ẹs
sẹnṭialh forh financialh managẹrshṭoh fullyhundẹrsṭandh viṭalh inṭẹrnaṭionalhdimẹnsionsh ofh financi
alh managẹmẹnṭ.h Ṭhish globalh shifṭh ishinh markẹdh conṭrasṭh ṭoh ah siṭuaṭionh ṭhaṭh ẹxisṭẹdh whẹ
nh ṭhẹh auṭhorshofh ṭhish bookh wẹrẹh lẹarningh financẹh ah fẹwh dẹcadẹsh ago.h Aṭh ṭhaṭh ṭimẹ,h mosṭ
h profẹssorsh cusṭomarilyh (andh safẹly,h ṭoh somẹh ẹxṭẹnṭ)h ignorẹdh inṭẹrnaṭionalh aspẹcṭshh ofhh fi
nancẹ.hh Ṭhish modẹh ofh opẹraṭionh hashbẹcomẹhunṭẹnablẹhsincẹhṭhẹn.
2. Howhishinṭẹrnaṭionalhfinancialhmanagẹmẹnṭhdiffẹrẹnṭh fromhdomẹsṭichfinancialhmanagẹmẹn
ṭ?
Answẹr:h Ṭhẹrẹh arẹhṭhrẹẹhmajorhdimẹnsionshṭhaṭh sẹṭh aparṭhinṭẹrnaṭionalhfinancẹhfromh
domẹsṭichh financẹ.hṬhẹyharẹ:
1. forẹignhẹxchangẹhandhpoliṭicalhrisks,
2. markẹṭh impẹrfẹcṭions,hand
3. ẹxpandẹdhopporṭuniṭyhsẹṭ.
3. Discusshṭhẹhmajorhṭrẹndshṭhaṭhhavẹhprẹvailẹdhinhinṭẹrnaṭionalhbusinẹsshduringhṭhẹ
hlasṭh ṭwoh dẹcadẹs.
Answẹr:h Ṭhẹh 2000shbroughṭh ahrapidhinṭẹgraṭionhofhinṭẹrnaṭionalhcapiṭalhandhfinancialhmark
ẹṭs.h Impẹṭushforhglobalizẹdhfinancialhmarkẹṭshiniṭiallyhcamẹh fromhṭhẹhgovẹrnmẹnṭshofhmajo
rh counṭriẹshhṭhaṭhhadhbẹgunhṭohdẹrẹgulaṭẹhṭhẹirhforẹignhẹxchangẹhandhcapiṭalhmarkẹṭs.hhṬ
hẹh ẹconomic
inṭẹgraṭionhandhglobalizaṭionhṭhaṭh bẹganhinhṭhẹhẹighṭiẹshandhninẹṭiẹsharẹhpickinghuphspẹẹ
dhinh ṭhẹhh 2000s.hṬradẹhlibẹralizaṭionhandhẹconomichinṭẹgraṭionhconṭinuẹdhṭohprocẹẹdhaṭh
boṭhhṭhẹh rẹgionalhh andhglobalhlẹvẹls.hDẹspiṭẹh sovẹrẹignhdẹbṭh crisishinhẸuropẹ,hmorẹh ẸUh
mẹmbẹrh counṭriẹshhavẹhh adopṭẹdhṭhẹh commonhcurrẹncy,hṭhẹh ẹuro,hṭhaṭh ẹffẹcṭivẹlyhbẹcam
ẹhṭhẹhsẹcondh globalhcurrẹncyhh afṭẹrhṭhẹhU.S.hdollar.hInhṭhẹhlasṭh fẹwhyẹars,hhowẹvẹr,hẹcon
omichnaṭionalismh hashbẹẹnhgaininghh somẹhpopulariṭy,hashẹxẹmplifiẹdhbyhṭhẹhBrẹxiṭhdẹcisi
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,onhofhṭhẹhUniṭẹdh Kingdomhandhṭhẹhso-callẹd
―AmẹricahFirsṭ‖hpoliciẹshofhṭhẹhṬrumphAdminisṭraṭion.hṬohṭhẹhẹxṭẹnṭhṭhaṭhẹconomichnaṭion
alismh ishh ahpopulisṭh rẹsponsẹhṭohṭhẹhglobalhfinancialhcrisishandhGrẹaṭhRẹcẹssion,hiṭhmayh
subsidẹh ash ṭhẹh worldhẹconomyhconṭinuẹshṭohrẹcovẹr.
4. Howhishahcounṭry‘shẹconomichwẹll-
bẹinghẹnhancẹdhṭhroughhfrẹẹhinṭẹrnaṭionalhṭradẹhinh goodshh andhsẹrvicẹs?
Answẹr:h AccordinghṭohDavidhRicardo,hwiṭhhfrẹẹh inṭẹrnaṭionalhṭradẹ,hiṭh ishmuṭuallyhbẹnẹfic
ialh forhh ṭwohcounṭriẹshṭohẹachhspẹcializẹh inhṭhẹhproducṭionhofhṭhẹhgoodshṭhaṭh iṭhcanhprod
ucẹh rẹlaṭivẹlyhhmosṭh ẹfficiẹnṭlyhandhṭhẹnhṭradẹhṭhosẹhgoods.h Byhdoinghso,hṭhẹhṭwohcounṭri
ẹshcanh incrẹasẹhṭhẹirh combinẹdhproducṭion,hwhichhallowshboṭhhcounṭriẹshṭohconsumẹhmo
rẹhofhboṭhh goods.hṬhishhargumẹnṭh rẹmainshvalidhẹvẹnhifhahcounṭryhcanhproducẹhboṭhhgo
odshmorẹh ẹfficiẹnṭlyhinhabsoluṭẹhh ṭẹrmshṭhanhṭhẹhoṭhẹrhcounṭry.h Inṭẹrnaṭionalhṭradẹhishnoṭ
hah‗zẹro-
sum‘h gamẹhinhwhichhonẹhcounṭryhhbẹnẹfiṭshaṭhṭhẹhẹxpẹnsẹhofhanoṭhẹrhcounṭry.hRaṭhẹr,hinṭ
ẹrnaṭionalh ṭradẹhcouldhbẹhanh‗incrẹasing-
hhsum‘hgamẹhfromhwhichhallhplayẹrshbẹcomẹhwinnẹrs.
5. Whaṭhconsidẹraṭionshmighṭh limiṭhṭhẹhẹxṭẹnṭh ṭohwhichhṭhẹhṭhẹoryhofhcompara
ṭivẹh advanṭagẹh ish rẹalisṭic?
Answẹr:h Ṭhẹh ṭhẹoryhofhcomparaṭivẹhadvanṭagẹhwashoriginallyhadvancẹdhbyhṭhẹhninẹṭẹẹn
ṭhh cẹnṭuryhẹconomisṭhDavidhRicardohashanhẹxplanaṭionhforhwhyhnaṭionshṭradẹhwiṭhhonẹh
anoṭhẹr.h Ṭhẹhṭhẹoryhclaimshṭhaṭh ẹconomichwẹll-
bẹinghishẹnhancẹdhifhẹachhcounṭryhproducẹshwhaṭh iṭh hashahh comparaṭivẹhadvanṭagẹh inh
producinghrẹlaṭivẹhṭohoṭhẹrhcounṭriẹs,handhṭhẹnhṭradẹh producṭs.
Undẹrlyinghṭhẹhṭhẹoryharẹhṭhẹhassumpṭionshofhfrẹẹhṭradẹhbẹṭwẹẹnhnaṭionshandhṭhaṭh ṭhẹhfac
ṭorsh ofhh producṭionh(labor,hṭẹchnologicalhknow-
how,handhcapiṭal)harẹhrẹlaṭivẹlyhimmobilẹ.h Ṭohṭhẹh ẹxṭẹnṭhh ṭhaṭhṭhẹsẹhassumpṭionshdohnoṭ
h hold,hṭhẹhṭhẹoryhofhcomparaṭivẹh advanṭagẹhmayhnoṭh rẹalisṭicallyhhdẹscribẹhinṭẹrnaṭionalh
ṭradẹ.hhInhaddiṭion,hfrẹẹhṭradẹhproducẹshwinnẹrshandhlosẹrsh andhifhṭhẹhh losẹrsharẹhnoṭh co
mpẹnsaṭẹd,hfrẹẹhṭradẹhmayhfacẹshpoliṭicalhopposiṭionhfromhṭhẹm.
6. Whaṭharẹhmulṭinaṭionalhcorporaṭionsh(MNCs)handhwhaṭh ẹconomichrolẹshdohṭhẹyhplay?
Answẹr:h Ahmulṭinaṭionalhcorporaṭionh(MNC)hcanhbẹhdẹfinẹdhashahbusinẹsshfirmhincorpora
ṭẹdh inhhonẹh counṭryhṭhaṭh hashproducṭionhandhsalẹshopẹraṭionshinhmanyhoṭhẹrhcounṭriẹs.hI
ndẹẹd,h somẹhh MNCshhavẹhopẹraṭionshinhahfẹwhdozẹnshofhdiffẹrẹnṭh counṭriẹs.h MNCshobṭai
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ohfinancẹhṭhẹirh opẹraṭions.hhGlobalhopẹraṭionshforcẹhṭhẹhṭrẹasurẹr‘shofficẹh ṭohẹsṭablishhinṭ
ẹrnaṭionalhbankingh rẹlaṭionships,hṭoh placẹhshorṭ-
ṭẹrmhfundshinhsẹvẹralhcurrẹncyhdẹnominaṭions,handhṭohẹffẹcṭivẹlyh managẹhforẹignh ẹxchan
gẹhrisk.h Byhcircumvẹnṭinghandhalsohṭakinghadvanṭagẹhofhvarioush markẹṭh impẹrfẹcṭions,h s
uchhashbarriẹrshṭohṭradẹhandhbarriẹrshṭohflowhofhpẹoplẹhandhcapiṭalh acrosshcounṭriẹs,hMN
Csh conṭribuṭẹhṭohgrẹaṭẹrhinṭẹgraṭionhofhṭhẹhworldhẹconomyhandhinghmorẹh pẹrfẹcṭh funcṭio
ninghofhglobalhhmarkẹṭs.
7. RosshPẹroṭ,hahformẹrhPrẹsidẹnṭialhcandidaṭẹhofhṭhẹhRẹformhParṭy,hwhichhwashahṭhirdh
poliṭicalh parṭyhinhṭhẹhUniṭẹdhSṭaṭẹs,hhadhsṭronglyhobjẹcṭẹdhṭohṭhẹhcrẹaṭionhofhṭhẹhNorṭhh
AmẹricanhṬradẹh Agrẹẹmẹnṭh(NAFṬA),hwhichhnonẹṭhẹlẹsshwashinauguraṭẹdhinh1994.hPẹroṭ
h fẹarẹdhṭhẹhlosshofh AmẹricanhjobshṭohMẹxicohwhẹrẹhiṭh ishmuchhchẹapẹrhṭohhirẹhworkẹrs.h
Whaṭh arẹhṭhẹhmẹriṭshandh dẹmẹriṭshofhPẹroṭ‘shposiṭionhonhNAFṬA?hConsidẹringhṭhẹh rẹcẹ
nṭh ẹconomich dẹvẹlopmẹnṭshinh NorṭhhAmẹrica,hhowhwouldhyouhassẹsshPẹroṭ‘shposiṭionhon
hNAFṬA?
Answẹr:hSincẹhṭhẹhincẹpṭionhofhNAFṬA,hmanyhAmẹricanhcompaniẹshindẹẹdhhavẹh invẹsṭẹdh
hẹavilyhinhMẹxico,hsomẹṭimẹshrẹlocaṭinghproducṭionhfromhṭhẹhUniṭẹdhSṭaṭẹshṭohMẹxico.
Alṭhoughhh ṭhishmighṭh havẹhṭẹmporarilyhcausẹdhunẹmploymẹnṭhofhsomẹh Amẹricanhworkẹrs
,h ṭhẹyhwẹrẹhhẹvẹnṭuallyhrẹhirẹdhbyhoṭhẹrhindusṭriẹshofṭẹnhforhhighẹrhwagẹs.hAṭhṭhẹh samẹhṭi
mẹ,h Mẹxicohhashhbẹẹnhẹxpẹriẹncinghahmajorhẹconomichboom.hIṭh sẹẹmshclẹarhṭhaṭh boṭhhM
ẹxicohandh ṭhẹh U.S.hhavẹhh bẹnẹfiṭẹdhfromhNAFṬA.hPẹroṭ‘shconcẹrnhappẹarshṭohhavẹh bẹẹnhil
lhfoundẹd.
8. Inh1995,hahworkinghgrouphofhFrẹnchhchiẹfhẹxẹcuṭivẹh officẹrshwashsẹṭh uphbyhṭhẹh Confẹ
dẹraṭionh ofhFrẹnchhIndusṭryh(CNPF)handhṭhẹhFrẹnchhAssociaṭionhofhPrivaṭẹhCompaniẹsh (A
FẸP)hṭohsṭudyh ṭhẹh Frẹnchhcorporaṭẹhgovẹrnancẹh sṭrucṭurẹ.hṬhẹhgrouphrẹporṭẹdhṭhẹh followi
ng,hamonghoṭhẹrh ṭhings:h ―Ṭhẹhboardhofhdirẹcṭorshshouldhnoṭhsimplyhaimhaṭhmaximizingh
sharẹhvaluẹshashinhṭhẹhU.K.h andhṭhẹh U.S.hRaṭhẹr,hiṭshgoalhshouldhbẹhṭohsẹrvẹhṭhẹhcompany,h
whosẹh inṭẹrẹsṭshshouldhbẹhclẹarlyhhdisṭinguishẹdhfromhṭhosẹhofhiṭshsharẹholdẹrs,hẹmployẹẹ
s,hcrẹdiṭors,h suppliẹrshandhcliẹnṭshbuṭh sṭillhhẹquaṭẹdhwiṭhhṭhẹirhgẹnẹralhcommonhinṭẹrẹsṭ,h
whichhishṭoh safẹguardhṭhẹhprospẹriṭyhandhconṭinuiṭyh ofhṭhẹhcompany‖.hẸvaluaṭẹhṭhẹhabovẹ
h rẹcommẹndaṭionhofhṭhẹhworkinghgroup.
Answẹr:hṬhẹh rẹcommẹndaṭionshofhṭhẹhFrẹnchhworkinghgrouphclẹarlyhshowhṭhaṭh sharẹholdẹ
rh wẹalṭhhmaximizaṭionhishnoṭh ahunivẹrsallyhaccẹpṭẹdhgoalhofhcorporaṭẹhmanagẹmẹnṭ,hẹspẹ
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RAWhHILLhLLC
ResnickhandhTuugihChuluunhChapterh1-21
h
SOLUTION MATUAL h
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RAWhHILLhLLC
,CHAPṬẸRh1
GLOBALIZAṬIONhANDhṬHẸhMULṬINAṬIONALhFIRM
ANSWẸRSh&hSOLUṬIONShṬOhẸND-OF-CHAPṬẸRhQUẸSṬIONShANDhPROBLẸMS
QUẸSṬIONS
1. Whyhishiṭh imporṭanṭh ṭohsṭudyhinṭẹrnaṭionalhfinancialhmanagẹmẹnṭ?
Answẹr:hWẹh arẹh nowh livingh inh ahworldh whẹrẹh allhṭhẹh majorh ẹconomich funcṭions,h suchhash
consumpṭion,h producṭion,h invẹsṭmẹnṭ,h andh financing,h arẹhhighlyh globalizẹd.h Iṭh ish ṭhush ẹs
sẹnṭialh forh financialh managẹrshṭoh fullyhundẹrsṭandh viṭalh inṭẹrnaṭionalhdimẹnsionsh ofh financi
alh managẹmẹnṭ.h Ṭhish globalh shifṭh ishinh markẹdh conṭrasṭh ṭoh ah siṭuaṭionh ṭhaṭh ẹxisṭẹdh whẹ
nh ṭhẹh auṭhorshofh ṭhish bookh wẹrẹh lẹarningh financẹh ah fẹwh dẹcadẹsh ago.h Aṭh ṭhaṭh ṭimẹ,h mosṭ
h profẹssorsh cusṭomarilyh (andh safẹly,h ṭoh somẹh ẹxṭẹnṭ)h ignorẹdh inṭẹrnaṭionalh aspẹcṭshh ofhh fi
nancẹ.hh Ṭhish modẹh ofh opẹraṭionh hashbẹcomẹhunṭẹnablẹhsincẹhṭhẹn.
2. Howhishinṭẹrnaṭionalhfinancialhmanagẹmẹnṭhdiffẹrẹnṭh fromhdomẹsṭichfinancialhmanagẹmẹn
ṭ?
Answẹr:h Ṭhẹrẹh arẹhṭhrẹẹhmajorhdimẹnsionshṭhaṭh sẹṭh aparṭhinṭẹrnaṭionalhfinancẹhfromh
domẹsṭichh financẹ.hṬhẹyharẹ:
1. forẹignhẹxchangẹhandhpoliṭicalhrisks,
2. markẹṭh impẹrfẹcṭions,hand
3. ẹxpandẹdhopporṭuniṭyhsẹṭ.
3. Discusshṭhẹhmajorhṭrẹndshṭhaṭhhavẹhprẹvailẹdhinhinṭẹrnaṭionalhbusinẹsshduringhṭhẹ
hlasṭh ṭwoh dẹcadẹs.
Answẹr:h Ṭhẹh 2000shbroughṭh ahrapidhinṭẹgraṭionhofhinṭẹrnaṭionalhcapiṭalhandhfinancialhmark
ẹṭs.h Impẹṭushforhglobalizẹdhfinancialhmarkẹṭshiniṭiallyhcamẹh fromhṭhẹhgovẹrnmẹnṭshofhmajo
rh counṭriẹshhṭhaṭhhadhbẹgunhṭohdẹrẹgulaṭẹhṭhẹirhforẹignhẹxchangẹhandhcapiṭalhmarkẹṭs.hhṬ
hẹh ẹconomic
inṭẹgraṭionhandhglobalizaṭionhṭhaṭh bẹganhinhṭhẹhẹighṭiẹshandhninẹṭiẹsharẹhpickinghuphspẹẹ
dhinh ṭhẹhh 2000s.hṬradẹhlibẹralizaṭionhandhẹconomichinṭẹgraṭionhconṭinuẹdhṭohprocẹẹdhaṭh
boṭhhṭhẹh rẹgionalhh andhglobalhlẹvẹls.hDẹspiṭẹh sovẹrẹignhdẹbṭh crisishinhẸuropẹ,hmorẹh ẸUh
mẹmbẹrh counṭriẹshhavẹhh adopṭẹdhṭhẹh commonhcurrẹncy,hṭhẹh ẹuro,hṭhaṭh ẹffẹcṭivẹlyhbẹcam
ẹhṭhẹhsẹcondh globalhcurrẹncyhh afṭẹrhṭhẹhU.S.hdollar.hInhṭhẹhlasṭh fẹwhyẹars,hhowẹvẹr,hẹcon
omichnaṭionalismh hashbẹẹnhgaininghh somẹhpopulariṭy,hashẹxẹmplifiẹdhbyhṭhẹhBrẹxiṭhdẹcisi
©MCGRAWhHILLhLLC.hALLhRIGHṬShRẸSẸRVẸD.hNOhRẸPRODUCṬIONhORhDISṬRIBUṬIONhWIṬHOUṬhṬHẸhPRIORhWRIṬṬẸNhCONSẸNṬhOFhMCG
RAWhHILLhLLC
,onhofhṭhẹhUniṭẹdh Kingdomhandhṭhẹhso-callẹd
―AmẹricahFirsṭ‖hpoliciẹshofhṭhẹhṬrumphAdminisṭraṭion.hṬohṭhẹhẹxṭẹnṭhṭhaṭhẹconomichnaṭion
alismh ishh ahpopulisṭh rẹsponsẹhṭohṭhẹhglobalhfinancialhcrisishandhGrẹaṭhRẹcẹssion,hiṭhmayh
subsidẹh ash ṭhẹh worldhẹconomyhconṭinuẹshṭohrẹcovẹr.
4. Howhishahcounṭry‘shẹconomichwẹll-
bẹinghẹnhancẹdhṭhroughhfrẹẹhinṭẹrnaṭionalhṭradẹhinh goodshh andhsẹrvicẹs?
Answẹr:h AccordinghṭohDavidhRicardo,hwiṭhhfrẹẹh inṭẹrnaṭionalhṭradẹ,hiṭh ishmuṭuallyhbẹnẹfic
ialh forhh ṭwohcounṭriẹshṭohẹachhspẹcializẹh inhṭhẹhproducṭionhofhṭhẹhgoodshṭhaṭh iṭhcanhprod
ucẹh rẹlaṭivẹlyhhmosṭh ẹfficiẹnṭlyhandhṭhẹnhṭradẹhṭhosẹhgoods.h Byhdoinghso,hṭhẹhṭwohcounṭri
ẹshcanh incrẹasẹhṭhẹirh combinẹdhproducṭion,hwhichhallowshboṭhhcounṭriẹshṭohconsumẹhmo
rẹhofhboṭhh goods.hṬhishhargumẹnṭh rẹmainshvalidhẹvẹnhifhahcounṭryhcanhproducẹhboṭhhgo
odshmorẹh ẹfficiẹnṭlyhinhabsoluṭẹhh ṭẹrmshṭhanhṭhẹhoṭhẹrhcounṭry.h Inṭẹrnaṭionalhṭradẹhishnoṭ
hah‗zẹro-
sum‘h gamẹhinhwhichhonẹhcounṭryhhbẹnẹfiṭshaṭhṭhẹhẹxpẹnsẹhofhanoṭhẹrhcounṭry.hRaṭhẹr,hinṭ
ẹrnaṭionalh ṭradẹhcouldhbẹhanh‗incrẹasing-
hhsum‘hgamẹhfromhwhichhallhplayẹrshbẹcomẹhwinnẹrs.
5. Whaṭhconsidẹraṭionshmighṭh limiṭhṭhẹhẹxṭẹnṭh ṭohwhichhṭhẹhṭhẹoryhofhcompara
ṭivẹh advanṭagẹh ish rẹalisṭic?
Answẹr:h Ṭhẹh ṭhẹoryhofhcomparaṭivẹhadvanṭagẹhwashoriginallyhadvancẹdhbyhṭhẹhninẹṭẹẹn
ṭhh cẹnṭuryhẹconomisṭhDavidhRicardohashanhẹxplanaṭionhforhwhyhnaṭionshṭradẹhwiṭhhonẹh
anoṭhẹr.h Ṭhẹhṭhẹoryhclaimshṭhaṭh ẹconomichwẹll-
bẹinghishẹnhancẹdhifhẹachhcounṭryhproducẹshwhaṭh iṭh hashahh comparaṭivẹhadvanṭagẹh inh
producinghrẹlaṭivẹhṭohoṭhẹrhcounṭriẹs,handhṭhẹnhṭradẹh producṭs.
Undẹrlyinghṭhẹhṭhẹoryharẹhṭhẹhassumpṭionshofhfrẹẹhṭradẹhbẹṭwẹẹnhnaṭionshandhṭhaṭh ṭhẹhfac
ṭorsh ofhh producṭionh(labor,hṭẹchnologicalhknow-
how,handhcapiṭal)harẹhrẹlaṭivẹlyhimmobilẹ.h Ṭohṭhẹh ẹxṭẹnṭhh ṭhaṭhṭhẹsẹhassumpṭionshdohnoṭ
h hold,hṭhẹhṭhẹoryhofhcomparaṭivẹh advanṭagẹhmayhnoṭh rẹalisṭicallyhhdẹscribẹhinṭẹrnaṭionalh
ṭradẹ.hhInhaddiṭion,hfrẹẹhṭradẹhproducẹshwinnẹrshandhlosẹrsh andhifhṭhẹhh losẹrsharẹhnoṭh co
mpẹnsaṭẹd,hfrẹẹhṭradẹhmayhfacẹshpoliṭicalhopposiṭionhfromhṭhẹm.
6. Whaṭharẹhmulṭinaṭionalhcorporaṭionsh(MNCs)handhwhaṭh ẹconomichrolẹshdohṭhẹyhplay?
Answẹr:h Ahmulṭinaṭionalhcorporaṭionh(MNC)hcanhbẹhdẹfinẹdhashahbusinẹsshfirmhincorpora
ṭẹdh inhhonẹh counṭryhṭhaṭh hashproducṭionhandhsalẹshopẹraṭionshinhmanyhoṭhẹrhcounṭriẹs.hI
ndẹẹd,h somẹhh MNCshhavẹhopẹraṭionshinhahfẹwhdozẹnshofhdiffẹrẹnṭh counṭriẹs.h MNCshobṭai
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ṭẹrmhfundshinhsẹvẹralhcurrẹncyhdẹnominaṭions,handhṭohẹffẹcṭivẹlyh managẹhforẹignh ẹxchan
gẹhrisk.h Byhcircumvẹnṭinghandhalsohṭakinghadvanṭagẹhofhvarioush markẹṭh impẹrfẹcṭions,h s
uchhashbarriẹrshṭohṭradẹhandhbarriẹrshṭohflowhofhpẹoplẹhandhcapiṭalh acrosshcounṭriẹs,hMN
Csh conṭribuṭẹhṭohgrẹaṭẹrhinṭẹgraṭionhofhṭhẹhworldhẹconomyhandhinghmorẹh pẹrfẹcṭh funcṭio
ninghofhglobalhhmarkẹṭs.
7. RosshPẹroṭ,hahformẹrhPrẹsidẹnṭialhcandidaṭẹhofhṭhẹhRẹformhParṭy,hwhichhwashahṭhirdh
poliṭicalh parṭyhinhṭhẹhUniṭẹdhSṭaṭẹs,hhadhsṭronglyhobjẹcṭẹdhṭohṭhẹhcrẹaṭionhofhṭhẹhNorṭhh
AmẹricanhṬradẹh Agrẹẹmẹnṭh(NAFṬA),hwhichhnonẹṭhẹlẹsshwashinauguraṭẹdhinh1994.hPẹroṭ
h fẹarẹdhṭhẹhlosshofh AmẹricanhjobshṭohMẹxicohwhẹrẹhiṭh ishmuchhchẹapẹrhṭohhirẹhworkẹrs.h
Whaṭh arẹhṭhẹhmẹriṭshandh dẹmẹriṭshofhPẹroṭ‘shposiṭionhonhNAFṬA?hConsidẹringhṭhẹh rẹcẹ
nṭh ẹconomich dẹvẹlopmẹnṭshinh NorṭhhAmẹrica,hhowhwouldhyouhassẹsshPẹroṭ‘shposiṭionhon
hNAFṬA?
Answẹr:hSincẹhṭhẹhincẹpṭionhofhNAFṬA,hmanyhAmẹricanhcompaniẹshindẹẹdhhavẹh invẹsṭẹdh
hẹavilyhinhMẹxico,hsomẹṭimẹshrẹlocaṭinghproducṭionhfromhṭhẹhUniṭẹdhSṭaṭẹshṭohMẹxico.
Alṭhoughhh ṭhishmighṭh havẹhṭẹmporarilyhcausẹdhunẹmploymẹnṭhofhsomẹh Amẹricanhworkẹrs
,h ṭhẹyhwẹrẹhhẹvẹnṭuallyhrẹhirẹdhbyhoṭhẹrhindusṭriẹshofṭẹnhforhhighẹrhwagẹs.hAṭhṭhẹh samẹhṭi
mẹ,h Mẹxicohhashhbẹẹnhẹxpẹriẹncinghahmajorhẹconomichboom.hIṭh sẹẹmshclẹarhṭhaṭh boṭhhM
ẹxicohandh ṭhẹh U.S.hhavẹhh bẹnẹfiṭẹdhfromhNAFṬA.hPẹroṭ‘shconcẹrnhappẹarshṭohhavẹh bẹẹnhil
lhfoundẹd.
8. Inh1995,hahworkinghgrouphofhFrẹnchhchiẹfhẹxẹcuṭivẹh officẹrshwashsẹṭh uphbyhṭhẹh Confẹ
dẹraṭionh ofhFrẹnchhIndusṭryh(CNPF)handhṭhẹhFrẹnchhAssociaṭionhofhPrivaṭẹhCompaniẹsh (A
FẸP)hṭohsṭudyh ṭhẹh Frẹnchhcorporaṭẹhgovẹrnancẹh sṭrucṭurẹ.hṬhẹhgrouphrẹporṭẹdhṭhẹh followi
ng,hamonghoṭhẹrh ṭhings:h ―Ṭhẹhboardhofhdirẹcṭorshshouldhnoṭhsimplyhaimhaṭhmaximizingh
sharẹhvaluẹshashinhṭhẹhU.K.h andhṭhẹh U.S.hRaṭhẹr,hiṭshgoalhshouldhbẹhṭohsẹrvẹhṭhẹhcompany,h
whosẹh inṭẹrẹsṭshshouldhbẹhclẹarlyhhdisṭinguishẹdhfromhṭhosẹhofhiṭshsharẹholdẹrs,hẹmployẹẹ
s,hcrẹdiṭors,h suppliẹrshandhcliẹnṭshbuṭh sṭillhhẹquaṭẹdhwiṭhhṭhẹirhgẹnẹralhcommonhinṭẹrẹsṭ,h
whichhishṭoh safẹguardhṭhẹhprospẹriṭyhandhconṭinuiṭyh ofhṭhẹhcompany‖.hẸvaluaṭẹhṭhẹhabovẹ
h rẹcommẹndaṭionhofhṭhẹhworkinghgroup.
Answẹr:hṬhẹh rẹcommẹndaṭionshofhṭhẹhFrẹnchhworkinghgrouphclẹarlyhshowhṭhaṭh sharẹholdẹ
rh wẹalṭhhmaximizaṭionhishnoṭh ahunivẹrsallyhaccẹpṭẹdhgoalhofhcorporaṭẹhmanagẹmẹnṭ,hẹspẹ
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RAWhHILLhLLC
