International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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Using Saudi Arabia as an example. Do you believe that cultural similarities among people can out weight cultural differences that exist in terms of doing business together in the future?
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
How does Poland's culture impact the ethical reasoning of its people?Describe how the country's ethical reasoning might disrupt global business?
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- 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. Clear my choicearrow_forwardWhich 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 diversificationarrow_forwardWhich of the following environmental factors can affect thecost of doing business in a foreign country? (Identify allcorrect answers.)a. The educational level of the workforce.b. Laws regulating the transfer of profits out of a country.c. Tax and tariff regulations.d. Restricted access to communication and transportationnetworks.arrow_forward
- What benefit does a country get out of remaining insularly and isolated in their accounting policies? (i.e. import policies, not following IFRS, etc.)arrow_forwardWhat are the requirements that are needed in England and France for an enforceable contract to protect business interests?arrow_forwardYour company located in the US imports raw materials from Europe. If the European Central Bank announces to lower the Euro exchange rate, what impact do you expect to see in your business? A. Your company will pay higher US dollar costs to import from Europe. B. Your company will pay lower US dollar costs to import from Europe. C. The Euro exchange rate doesn't have any impact on your company. D. It should reduce your competitiveness in your home market.arrow_forward
- Question 2 The Liability of Foreigness (LOF) is the inherent disadvantage of foreign firms experience in host countries because of their non-native status. Assume that you are the owner of a small and reasonable profitable firm,would you consider expanding oversea? Elaborate your point of view by relate with the issues of foreign market entryarrow_forward1. What impact would harmonization of national accounting standards have on international businesses? 2. Are U.S. firms at a competitive disadvantage because they cannot use accounting reserves as German firms do?arrow_forward1-If a country imposes lower corporate income tax rates, does that provide an unfair advantage? 2-Why might different tax laws on corporate income across countries allow firms from some countries to have a competitive advantage in the international trade arena?arrow_forward
- 1. Supposed a company plans to expand its business abroad, what are the risks it might encounter? 2. What are the needed policy interventions that must be imposed upon doing business internationally?arrow_forwardWhat is the purpose of having a two-tier system of boards of directors in countries such as Germany? How does the dual-board approach ameliorate the potential conflicts in the principal-agent relationship between investor and manager?arrow_forwardWhich 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.arrow_forward
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