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Discuss the different ways political events in a host country may affect local operations of an MNC.Answer: The answer can be organized based on the three types of political risk: that are, transfer risk, operational risk, and control risk. Transfer risk takes place from the uncertainty about cross-border flows of payments, capital, and know-how and so on. Operational risk takes place from the uncertainty about the host country’s policies influencing the local operations of MNCs. Control risk takes place from the uncertainty about the host country’s policy as regards to the ownership and control of local operations of MNCs.
Testing the Hypothesis To test the null hypothesis, we compare the observed and the expected frequencies. If the actual and the expected values are nearly equal to each other w
The calculations for the cash flows Actual amount of cash paid or received during the period needs to be established. This can get quite tricky as there would be accruals
Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no
Q. Describe the Meaning of Financial Management? Meaning of Financial Management: - Financial management is a vital as well as an integral part of business management. It demot
Weaver Chocolate Co. expects to gain $3.50 per share during the present year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its
Q. Example on Bills of exchange? ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar
High interest rates in the early 1980s brought about this innovative mortgage arrangement. SAMs use inflation as a way of paying for the property. The lender agre
Trading Mechanism Of Future: Flow of the Order Any person who wants to trade in futures has to contact a Futures Commission Merchant (FCM) or a broker. First, let us look
PRC Company, a retailer of baby clothes and toys, has been in existence for 20 years. Its approach to strategy has tended to be informal and emergent rather than planned. However,
How does the theory of comparative advantage relate to the currency swap market? Answer: Name recognition is very important in the international bond market. With no it, even a
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