International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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Which of the following does NOT refer to the ways of how a multinational company can reduce political risk?
Taking a conservative approach to investment and adjusting NPV of the project by reducing expected cash flows or by increasing the cost of capital in accordance with existing trends.
Purchasing insurance policy against political risks.
Acquiring minor shares in foreign corporations.
Creating a joint venture with local partners or a consortium with other multinational companies.
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
How can the Greater Liberalizations and removal of barrier to trade can stimulate FDI that can incentivise firms to invest overseas
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