The international financial manager has the same objective as every other manager in the multinational firm: to maximize the wealth of the stockholders. If the firm's stock price goes up as a result of the manager's decisions, the decisions were good ones. The stockholders would recognize that the value of the company has been enhanced by the manager's efforts. In order to achieve the firm's primary goal of maximizing stockholder wealth, the financial manager performs three major functions: financial planning and control, the efficient allocation of funds, and the acquisition of funds on favourable terms. MNCs have superior performance over domestic companies because they enjoy a better risk-return trade-off, market imperfections, the portfolio effect, comparative advantage, internationalization advantage, economies of scale, and a higher valuation. However, when MNCs attempt to maximize their overall company value, they face various constraints, such as large agency costs, a variety of risks, conflicts of interest, and multiple environments.

1. When MNCs attempt to maximize their overall company value, they face various constraints, discuss these factors by using examples. 

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When multinational corporations MNCs aim to maximize their overall company value they encounter several constraints that can impact their decisionmaking and operations Here are some factors that contr... View the full answer