Why the election could have significant effects on cash flow

Assignment Help Finance Basics
Reference no: EM132491911

Here's the scenario. Your firm has the opportunity to purchase a private firm (Zappo) making a complementary product. Zappo is located in Colombia.

  • There are a number of sources for country-specific data listed on the Learning Activities page and here is one very specific source: Colombia: Risk Assessment, from Michigan State University's GlobalEdge database.

Discussion 1: Review the political risk factors and identify those that could affect your business, summarize and describe these in your initial post, explaining how your cash flows could be affected.

Discussion 2: In addition, explain why threats of terrorism due to friction between two countries (the U.S. and Colombia) could possible affect your business, even though the terrorism has no effect on the relations between the U.S. and Colombia.

Discussion 3: Finally, assume that an upcoming election in Colombia may result in a complete changes in government.

Discussion 4: Explain why the election could have significant effects on your cash flows.

Reference no: EM132491911

Questions Cloud

Explain significance of item categories in bill of material : Explain the differences in product routing in terms of component assignment and production capacity. Explain significance of item categories in bill of material
Develop training to help prevent future violations of hr law : Imagine that you are an HR manager within that organization. You have been tasked with developing a training to help prevent future violations of the HR law.
Next creative breakthrough in business : What do you think the next creative breakthrough in business will be that will rival e-commerce and mobile phones in importance? (Loads of product planners
Droves of farmers making the tough decision to quit : At a desperate time for the dairy industry, with droves of farmers making the tough decision to quit, a determined Sunshine Coast couple is staking
Why the election could have significant effects on cash flow : Explain why threats of terrorism due to friction between two countries (the U.S. and Colombia) could possible affect your business, even though the terrorism
Find the level of output at which atc is minimized : Mr Phill owns a farm that produces maize, his cost of production can be represented by the following cost function: 4000Q - 1600Q2 + 200Q3.
Challenges that hr management may face in the future : Predict two (2) challenges that HR management may face in the future. Suggest one (1) strategy that HR management could use to mitigate these challenges.
Why ethical companies benefit from a lower cost of capital : Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned
What impact would you expect on exports : At the present moment, the United States has historically low interest rates. If these rates were to rise, what impact would you expect on exports

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the new price of the bond

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. Compute the new price of the bond

  Calculate the duration of the existing loan

Assuming the FI uses the cash to purchase the loan, calculate the duration of the existing loan.

  Determine the debt ratio of the firm

A firm has 30M shares issued with a market value of 15€ per share. It has debt issued with a market value of 104.4 M€ and it decides to pay a dividend.

  Discuss the history of us deficit in current accounts

Briefly discuss the history of US deficit in current and trade accounts and recent development in this deficit and how to understand the argument between USA and its major trade partners (German, Japan and China) about protectionism and currency m..

  Sandstone using the perpetual growth model

If the firm's rate of growth in annual dividends is 6 percent, calculate the price per share of Sandstone using the perpetual growth model.

  Question based on taxation and stock

Sarah owns 45 percent of stock in a C company that had a profit of 260,000$ in 2011. Kevin owns a 45 percent interest in a partnership that had a benefit of 260,000$ during the year. Find the income for Kevin and Sarah report for 2011.

  Should the firm purchase the machine

In Excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should ..

  New potato chip-making equipment

Today, Snack Foods, Inc. is investing $323,000 in some new potato chip-making equipment.

  What is the maximum price you should pay per share

You have decided to purchase shares of GHC but need an expected 12 percent rate of return to compensate for the perceived risk of such ownership.

  What are the break-even levels of ebit

Destin Corp. is comparing two different capital structures. Plan I would result in 10,000 shares of stock and $90,000 in debt. Plan II would result in 7,600.

  What is the function of the international money markets

What is the function of the international money markets? Briefly describe the reasons for the development and growth of the European money market. Explain how the international money, credit, and bond markets differ from one another.

  Prepare a business memo summarizing what you found

Complete the tutorials in short-term and long-term financing.-  Prepare a business memo summarizing what you found.

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!

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