International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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A U.S. firm that sells high-quality tennis racquets in the U.S., wants to expand internationally by selling them in Argentina and Brazil. Describe the tradeoffs that are involved for each method (such as exporting, direct foreign investment, etc.) that this firm could use to achieve its goal. Which method of international business in your view would be best suited for this firm? Explain why you recommend so
Which 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.
Which one of the following is likely discouraging foreign direct investmen (FDI) in one country?
A.
The foreign firm would produce a good which is currently not available in the host country.
B.
The foreign firm intends to partner with the local firms of the host country.
C.
The foreign firm's products are similar with the local firms of the host country.
D.
The foreign firm is able to compete in the market of the host country.
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