Reference no: EM13340612

NEED THIS- fin 534 international finance


4. International Opportunities

a. Do you think the acquisition of a foreign firm or licensing will result in greater growth for an  MNC? Which alternative is likely to have more risk?

b. Describe a scenario in which the size of a corporation is not affected by access to international

opportunities.

c. Explain why MNCs such as Coca-Cola and PepsiCo, Inc., still have numerous opportunities for international expansion.

5. International Opportunities Due to the Internet

a. What factors cause some firms to become more internationalized than others?

b. Offer your opinion on why the Internet may result in more International business.

6. Impact of Exchange Rate Movements Plak Co.of Chicago has several European subsidiaries that remit earnings to it each year. Explain how appreciation of the euro (the currency used in many European countries) would affect Plak's valuation.

7. Benefits and Risks of International Business

As an overall review of this chapter, identify possible reasons for growth in international business. Then, list the various disadvantages that may discourage international business.

8. Valuation of an MNC Hudson Co., a U.S. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson's best guess of its future peso cash flows to be received has not changed. However, its valuation has declined as a result of the increase in political risk. Explain.

9. Centralization and Agency Costs Would the agency problem be more pronounced for Berkely Corp., whose parent company makes most major decisions for its foreign subsidiaries, or Oakland Corp., which uses a decentralized approach?

10. Global Competition Explain why more standardized  product specifications across countries can increase global competition.