Question

In: Finance

Provide 3 reason related why Motorola Corporate stakeholders may decide not to relocate in China? One...

Provide 3 reason related why Motorola Corporate stakeholders may decide not to relocate in China?

One of the reason is worker welfare

Solutions

Expert Solution

Motorola’s corporate stakeholders (includes creditors, suppliers, unions, directors etc. ) are mostly based in USA and may decide not to relocate in China due to the following reasons:

  1. Worker welfare – Labor laws are lax in China while they are quite stringent in USA. Any decision to relocate to China will adversely affect the welfare of Motorola’s workers in the long run.
  2. Possibility of reduced levels of sustainability – Stakeholders are weary and cautious with regards to a tangible possibility that sustainability levels will be lower in China. This is because China is not a revolutionary power but a revisionist power.
  3. Overall level of stakeholders’ interests and protection is likely to fall in China – China does not keenly accept global rules and standards with regards to business, corporate governance and management. As such stakeholders think that their interests will be hurt in China and hence they may decide not to relocate in China.

Related Solutions

Reason why a corporate stakeholder may decide not to relocate to other country (political risk/economic condition/currency...
Reason why a corporate stakeholder may decide not to relocate to other country (political risk/economic condition/currency risk , worker welfare, stokeholder welfare)
Which one of these is the least probable reason why a firm may want to divest...
Which one of these is the least probable reason why a firm may want to divest itself of some of its assets? To cash out a profitable operation To raise cash To improve the strategic fit of its various divisions To comply with antitrust regulations To increase market share
Who do you think the stakeholders may be and why?
Who do you think the stakeholders may be and why?
Explain why a company may decide to use corporate bonds instead of stocks to get funds for an expansion project
Explain why a company may decide to use corporate bonds instead of stocks to get funds for an expansion project
a. Provide one reason, fully explained why the Chairman of the US Federal Reserve would oppose...
a. Provide one reason, fully explained why the Chairman of the US Federal Reserve would oppose the creation of the Libra. b. How will the Libra enhance the financial efficiency of the US and Global Financial System. Provide only one reason and fully explain it.
(14.43) One reason why the Normal approximation may fail to give accurate estimates of binomial probabilities...
(14.43) One reason why the Normal approximation may fail to give accurate estimates of binomial probabilities is that the binomial distributions are discrete and the Normal distributions are continuous. That is, counts take only whole number values, but Normal variables can take any value. We can improve the Normal approximation by treating each whole number count as if it occupied the interval from 0.5 below the number to 0.5 above the number. For example, approximate a binomial probabilityP(X⩾10)P(X⩾10)by finding the...
Recent research has suggested that the Phillips Curve has flattened substantially. Provide one reason why this...
Recent research has suggested that the Phillips Curve has flattened substantially. Provide one reason why this might have happened, and explain the implications for business cycle fluctuations
Discuss at least one reason why a company would buy back its own stock and provide...
Discuss at least one reason why a company would buy back its own stock and provide an example to support your points. Also, discuss any potential negative effects of the stock repurchase. Please support using a scholarly source.
Q.3 In your own words explain how agency theory and corporate governance are related. Provide examples...
Q.3 In your own words explain how agency theory and corporate governance are related. Provide examples of companies that experienced problems in corporate governance answer with refrences
Explain the reason why shareholder theory of control better accounts for interest protection than stakeholders theory
Explain the reason why shareholder theory of control better accounts for interest protection than stakeholders theory
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT