(solution) Your company, headquartered in Finland, is considering making a

(solution) Your company, headquartered in Finland, is considering making a

Your company, headquartered in Finland, is considering making a major FDI in Pakistan.  This planned acquisition will be your company?s first investment in Pakistan.  Despite the exciting potential investment, there are some concerns in the company regarding differing financial systems, potential agency problems, and political risks present in Pakistan. 

  • 1-What are the primary mechanisms of corporate governance in Finland?  Are they required by legal mandate or adopted at the discretion of the company?
  • 2-What are the primary mechanisms of corporate governance in Pakistan? Are they required by legal mandate or adopted at the discretion of the company? 
  • 3-How would you compare the effectiveness of these mechanisms?  Would it be possible to use some of the mechanisms of Finland in Pakistan?