1. The deal will put our company in a position to export goods to Eastern Europe. 2. The match between Brazil and France was so close that nobody could the outcome. 3. An unhappy home can affect children's behavior.
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- Because of political instability in North Africa, let’s not disclose specific countries. In addition, we restructured most of our French sales and some of our U.S. sales to occur through our offices in the Cayman Islands.This allows us to avoid paying higher taxes in those countries. The Cayman Islands has a 0% corporate incometax rate. We don’t want to highlight our ability to shift profits to avoid taxes.Required:Do you perceive an ethical dilemma? What would be the likely impact of following the controller’s suggestions?Who would benefit? Who would be injured?Lubbock, Inc., produces furniture and has no international business. Its major competitors import most of their furniture from Brazil and then sell it out of retail stores in the United States. How will Lubbock be affected if Brazil’s currency (the real) strengthens over time?DeltaTel a subsidiary of a multinational company supplies phone services to a mid-sized community in Ghana. John, the CEO attended a trade exhibition, ‘Automated Emigrate’ in Japan. As a result, John is concerned about DeltaTel’s ability to maintain its competitive position in the Ghanaian market. Owing to deregulation in the industry, and aggressive competition, a significant number of DeltaTel’s customers have switched. John feels that if DeltaTel were to invest fully in a new state–of–the–art fiber-optics technology as well as upgrade the latest computer equipment, the loss of market share may be arrested and operating efficiency may be improved. He contacted a leading vendor of fiber-optics systems and associated computer equipment to obtain information on operating characteristics and costs. This vendor would provide the necessary fiber-optic equipment, all associated installation costs, computer hardware, and initial software support for a total cost of GHS30,000,000. Although…
- Vitro-X in Malaysia has a subsidiary in Japan. Hence, Vitro-X receives Japanese Yen from the subsidiary, but this has negatively affected company value of Vitro-X, probably because of __________. A. appreciation of the Japanese Yen B. lowering of Japanese interest rates C. depreciation of the Japanese Yen D. weaker Japanese economyWhich of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.Aggie Co. produces chemicals. It is a major exporter to Europe, where it’s main competition is from other U.S. exporters. All these companies invoice the products in U.S. dollars. Is Aggie’s transaction exposure likely to be significantly affected if the euro strengthens or weakens? Explain. If the euro weakens for several years, can you think of any change that might occur in the global chemicals.
- Question Delta Telephone ltd. ,a subsidiary of a multinational company is a supplier of telephone services to a medium sized community in Ghana. John Dela , the chief executive of the company has just attended a trade exhibition entitled ‘Automated Emigrate’ in Japan. As a result of what he learned from the exhibition and information he has picked from his peers in other companies , Mr Dela is concerned about Delta’s ability to maintain its competitiveness position in the telecommunication market in Ghana. Owing to deregulation in the telecommunication industry and the aggressive action of new competitors in the local area, a significant number of Delta’s customers have switched to other suppliers of telephone and related telecommunication services. Mr Dela feels that if Delta were to invest fully in new state- of –the- art fiber-optics technology as well as upgrade in the latest computer equipment , the loss of market share may be arrested and operating efficiency may…Question 1 You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately, you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market, and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?Albert Camus, Noah Avram Chomsky, Woodrow Wilson, Elton Mayo, Frederick Taylor and Meredith Spencer together with their management consultant Etsey Agbenorxevi recently returned to Ghana for a holiday. It was during this same period that the COVID-19 pandemic hit the world hard to the extent that nations closed their borders. Having remained in Ghana for the past 8 months, they have become very accustomed to the culture of Ghana and have decided to move their investments from the diaspora to Ghana through the vehicle of business organisation here in Ghana. Upon a visit to the University of Ghana last week Thursday, they met you at the athletic oval and begun to discuss their intentions with you a) As a Company Law student who is very ardent and meticulous in whatever you do, discuss with them the types of business organisations there are in Ghana and why they should go for a particular business organisation and not the other. b) Following your counsel in A above, they want to know all…
- The small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars for its currency. Its domestic price of tofu is $1 per pound and the Kingdom produces and consumes 5 tons of tofu. The world price of tofu is just $0.50 per pound. At this price, the Kingdom would produce only 2 tons of tofu and would consume 8 tons of tofu, and thus have to import 6 tons of tofu. Suppose the Kingdom decides to open up to trade, but imposes a tariff of 0.25/lb on all imports of tofu. How much money does the Kingdom collect from this tariff? (Note: 1 ton = 2000 lbs.)Erie Co. has most of its business in the United States, except that it exports to Belgium. Its exports were invoiced in euros (Belgium’s currency) last year. It has no other economic exposure to exchange rate risk. Its main competition when selling to Belgium’s customers is a company in Belgium that sells similar products, denominated in euros. Starting today, Erie Co. plans to adjust its pricing strategy to invoice its exports in U.S. dollars instead of euros. Based on the new strategy, will Erie Co. be subject to economic exposure to exchange rate risk in the future? Briefly explain.Due to their rapid expansion to foreign markets the process is sometimes referred to as the “McDonaldization” of new markets. Which market entry strategy is McDonald’s Corporation using in those countries where local governments do not allow 100% foreign funded enterprises? a.Franchising b.Partnerships with local (domestic) companies c.Mergers & acquisitions d.Local holdings e.Direct export