International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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Students have asked these similar questions
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.
Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations. Which one of the following is not a true statement regarding foreign direct investment from the host country’s perspective?
a.Significant financial inflows always result from engaging in foreign direct investment.
b.Foreign direct investment can create new jobs and can generate tax revenues for governments
c.A concern of the local governments in host countries is the lack of corporate social responsibility
d.There is the potential for exploitation of human labor within certain countries
e.These investments may take the form of plants, buildings, or inventories
Which of the following is not a reason for U.S. firms operating in foreign markets?
A.Better economic and political environment (in the U.S.)
B.Less expensive labor
C.Tax incentives
D. To achieve international diversification
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