Chapter 15, Problem 2QA

13   XYZ Corporation is a U.S.-based corporation. It has decided to move some of its accounting operations abroad. The company will continue to use U.S. GAAP for external reporting purposes. Should the company insist that the employees located in the international locations follow the U.S.-based corporate culture? Explain?

ABC Inc. is a U.S. firm with annual export sales to Canada of about C$500 million.  Its main competitor is XYZ Inc., also based in the United States, with a subsidiary in Canada that generates about C$500 million in annual sales.  Any earnings generated by the subsidiary are reinvested to support its operations.  Based on the information provided, which company is subject to a higher degree of translation exposure?  Explain.

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…