Make direct investment in countries

Assignment Help Business Economics

Reference no: EM131164581

A company would want to make a direct investment in countries where the company’s home currency has higher purchasing power because the company should be able to:

a) purchase labor, land, and factory equipment more cheaply in the foreign country than at home.

b) find investors that would want to invest in the company’s home country business.

c) find investments that can be made with a higher return than at home. WRONG

d) sell labor, land, and factory equipment at a higher price in the foreign country than at home.

Reference no: EM131164581

Questions Cloud

Creative destruction-porters five forces : What’s the case for minimum wage or not? Creative destruction, Porters five forces.

Pure competition-oligopoly and pure monopoly : Pure competition, Oligopoly, Pure monopoly, monopolistic competition. Describe each and give an example.

Problems with public education lay in the fact : Friedman thought that problems with public education lay in the fact that: Friedman believed that the solution to higher education was different than public education because higher education differs from public education in the fact that: Friedman’s..

Overvalued currency and a fixed exchange rate : Suppose that in response to a severe recession a country with an overvalued currency and a fixed exchange rate does, in fact, move to a floating exchange rate system. This move to a floating exchange rate will cause the exchange rate to:

Make direct investment in countries : A company would want to make a direct investment in countries where the company’s home currency has higher purchasing power because the company should be able to:

Real exchange rate is appreciating-nominal exchange rate : If the real exchange rate is appreciating, the nominal exchange rate can be depreciating as long as:

Why monopsony may apply to nursing labor markets : The labor market for nurses though cyclical often has been characterized by prolonged periods of apparent shortages. One potential explanation for the phenomenon is the monopsony power of hospitals as employers of nurses. Discuss why monopsony may (o..

Depreciation in fredonia is straight line annually : You have a choice of starting a business in either the US or a foreign country(Fredonia). In Fredonia, income tax is a flat 25%. Depreciation in Fredonia is straight line annually. (There is no “offset” of 6 months in the first or last year). The inv..

What additional after tax cash flow : A firm just invested $600,000 in a manufacturing process that is estimated to generate annual cash flow of $250,000 for each of the next five years. At the end of year 5, there is no market for the product and no salvage value for the process. If a m..

User Account

All Pages