Question: (a) Describe the difference between centralized and decentralized management structure in controlling foreign subsidiaries. (2 marks) (b) Describe the trade-off of using centralized management structure

(a) Describe the difference between centralized and decentralized management structure in controlling foreign subsidiaries. (2 marks)

(b) Describe the trade-off of using centralized management structure to solve agency problem. (2 marks)

(c) Explain the rationale of multinational companies (MNCs) to establish foreign subsidiaries under Product Cycle Theory. (3 marks)

(d) Describe the trade-off between acquiring existing companies and establishing new foreign subsidiaries to expand overseas. (4 marks)

(e) Explain how the valuation of MNC will be affected if there is political unrest in the foreign country.

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