International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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can you answer question 33, please?
33) Transfer pricing may be a problem for host countries as
A) profits may not be accurately recorded as occurring in the host country.
B) the cost of exchanging one currency for another is costly in monetary terms and time.
C) prices are transferred to the local currency resulting in losses if exchange takes place on a day when the exchange rate is 'low'.
D) profits are always removed to the host country
Which of the following statements is true of foreign trade zone? It is an area through which merchandise is allowed to pass with fewer procedures but higher taxes. These areas provide very limited employment opportunities. International companies can store goods in these zones without incurring taxes, before shipping them to other countries. Goods imported into these zones require import licenses and are subject to import duties.
Which of the following best represents the primary economic and financial benefit to the U.S. from NAFTA?
It led to increased tariffs on U.S. exports to Canada and Mexico.
U.S. consumers had access to a wider variety of products.
It resulted in the relocation of major U.S. corporations to Europe.
The U.S. benefited from low-price manufacturing, low-priced labor, and reduced shipping and logistics costs.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Your 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_forwardA target zone agreement is maintained by forcing the exchange rate not to change over time a country buying the currency that is losing value out of the range a country buying the currency that is gaining value out of the range reducing trade between countries until the rate correctsarrow_forward
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