Valuation Model for a MNC. Valuation Model for a MNC. where E ( CF $, t ) represents expected cash flows to be received at the end of period t, n represents the number of periods into the future in which cash flows are received, and k represents the required rate of return by investors.
to dollars at the end of period t.
1. Theory of Comparative Advantage
2. Imperfect Markets Theory
3. Product Cycle Theory
1. International Trade (Exporting and Importing)
4. Joint Ventures
5. Acquisition of Existing Operations