International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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Students have asked these similar questions
Assume that an U.S. firm wants to engage in international business without making a major investment in the foreign country. Which method is LEAST appropriate in this situation?
A.
licensing
B.
acquisition of an existing firm in the foreign country
C.
exporting
D.
franchising
How important of international trade (imports and exports) to the world economy?
What accounting issues arise for a company as a result of engaging in international trade (imports and exports)?
Why might a company be interested in investing in an operation in a foreign country (foreign direct investment)?
The form of entry strategy into international operations that offers the lowest level of control would be :-
franchising.
licensing.
joint venture.
exporting.
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- What it a foreign trade zone, and what advantages does it offer U.S. companies?arrow_forwardEntry modes for entering new countries vary in their degree of control. What does control mean? O The degree of risk a firm has in its foreign activities The degree of ownership a firm has in its foreign activities O The degree of profits a firm has in its foreign activities O The degree of influence a firm has in its foreign activitiesarrow_forwardWhat are the circumstances under which the capital expenditure of a foreign subsidiary might have a positive NPV in local currency terms but be unprofitable from the parent firm’s perspective?arrow_forward
- If a firm does not have foreign subsidiaries, it is not subject to ____. Group of answer choices transaction exposure economic exposure translation exposure A and Barrow_forwarda. According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets. b. Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business? c.arrow_forwardReasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local ing-hiet equatitionsarrow_forward
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