User Account

All Pages

The most popular way for international expansion is for a

Assignment Help Accounting Basics
Reference no: EM13373257 , Length: 685 Words

The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share. In the meantime, domestic trade is far less risky than International trade.

In International trade, the exporter is most often not familiar with the buyer, and therefore is not sure whether the importer is creditworthy. If inventory is sold abroad and the buyer refuses to pay, it may be impossible, for the seller to have any legal resort to receive any payment from. In addition, there is a greater risk of political instability.

1. Discuss how political risk differs from country risk and in what ways political events in a foreign country can affect local financial operations of an MNC.

2. Do you believe that there are financial and/or operational measures MNC can take to eliminate political risk related to foreign investment project? If not, in your opinion, can MNC at least minimize the political risk? Please discuss how.

3. What are the advantages and disadvantages of having a global distribution capability? Do you think that the advantages are more than the disadvantages? Please discuss

4. Do you believe that foreign investments exposing multinational corporation to political and economic risks? Please explain the rationale behind your discussion.

Reference no: EM13373257

Questions Cloud

In july 2009 in the economy of sandy island 10000 people : in july 2009 in the economy of sandy island 10000 people were employed 1000 were unemployed and 5000 were not in the
1 what types of products are phone services and : 1. what types of products are phone services and electricity?2. why does a firm spend an enormous amount on advertising
1would auctioning broadcast licenses be more efficient than : 1.would auctioning broadcast licenses be more efficient than having the federal communications commission fcc assign
A state and explain the law of diminishing marginal utility : a. state and explain the law of diminishing marginal utility and do the same for the law of diminishing returns.b.
The most popular way for international expansion is for a : the most popular way for international expansion is for a local firm to acquire foreign companies. one of the most
Questionnbspone idea that the consultant had was to reduce : questionnbspone idea that the consultant had was to reduce prices to bring in more customers. if average prices were
Presented below are the financial balances for the atwood : presented below are the financial balances for the atwood company and the franz company as of december 31 2009
Suppose that marginal utility of good a is 4 times the : suppose that marginal utility of good a is 4 times the marginal utiltiy of good b but the proce of good ais only 2
Topic insurancesteve has taken an insurance policy to cover : topic insurancesteve has taken an insurance policy to cover his 1940 house. at the time of application the insurer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Qualifying stock redemption problem

Yellow Corporation transfers land (basis of $210,000, fair market value of $300,000) to Joe, a shareholder, to carry out a qualifying stock redemption. The land is distributed subject to a $320,000 liability. With respect to the redemption:

  Discuss the significant differences between two approaches

The convergence process is likely to lead to the acceptance of the IFRS approach. Explain whether or not you agree with this decision.

  Appropriate adjusting journal entry

Reese Company purchased office supplies costing $4,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,600 still on hand. The appropriate adjusting journal entry..

  What is the purpose of internal controls

What is the purpose of internal controls? Be specific.

  Evaluate the success of the project

Quillen Company is performing a post-audit of a project completed one year ago. The initial estimates were the project would cost $250,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $46,0..

  Purchase method for consolidation entries

Pacific has the following account balances as of Feb 1. Western pays $2,020,000 in cash. An additional $20,000 is paid in direct combination costs. For each of the following accounts, determine what balance will be included in a Feb 1 consolidatio..

  Compute the target selling price

Talia Corp. produces digital cameras. For each camera produced, direct materials are $24, direct labor is $16, variable manufacturing overhead is $12, fixed manufacturing overhead is $28, variable selling and administrative expenses are $10, and f..

  What is the amount of the loss on impairment

What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?

  Reporting investment using the equity method

At the end of the year, Watkins still holds only $20,000 of mechandise. What ammount of unrealized gross profit must Panner defer in reporting this investment using the equity method?

  Compute cost assigned to ending inventory using fifl

Compute the cost assigned to ending inventory using(1) FIFL, (2) LIFO, (3) specific identification units sold consist of 95 unitsfrom beginning inventory, 175 from a February 10 purchase.

  What is material from the point of view of a bank

Discuss the steps involved in setting the preliminary judgment about materiality. Class, the concept of materiality is important in the context of auditing. Materiality is a function of the time, the situation, and the people involved.

  What would the stock price be just after the dividend shares

The company also declared and paid a 10% stock dividend on its common shares. When the stock dividend was declared, 1 million common shares were outstanding, and the market price of common stock was $135 per share.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd