The subsidiary and its customers based in countries that now use the euro as their currency would no longer be exposed to exchange rate risk. Review the table of contents and identify whether each of the chapters from Chapter 2 through Chapter 21 have a macro or micro perspective. Chapters 2 through 8 are macro, while Chapter 9 through 21 are micro. Explain why MNCs such as Coca Cola and PepsiCo. Inc. still have numerous opportunities for international expansion.
Countries are at various stages of development.
Some countries have just recently opened their borders to MNCs. Many of these countries do not offer sufficient food or drink products to their consumers. An MNC desires to penetrate a foreign market with either a licensing agreement with a foreign firm or the acquisition of a foreign firm. Explain the differences in potential return and risk between a licensing agreement with a foreign firm, versus the acquisition of a foreign firm. A licensing agreement has limited potential for return, because the foreign firm will receive much of the benefits as a result of the licensing agreement.