Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. O The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. O Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. O The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. O Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ikea is a U.S.-based MNC with a large subsidiary in the Philippines financed with equity from the parent. In response to news about a possible change in the Philippine government, the subsidiary revised its capital structure by borrowing from local banks and transferring the equity investment back to the U.S. parent. Explain the likely motive behind these actions .
Simulate your own franchising multinational corporation (MNC) in the hotel industry.Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the North America region. Then examine issues related to foreign exchange management within the multinational corporation. Address the following: 1. The type of MNC, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given. 3. The foreign exchange exposure of the company and how the company plans to manage this exposure.
Prepare a two page executive briefing on the question of whether capital generated in the industrialized countries is finding its way to and from emerging markets. Is there some critical distinction between “less developed” and “emerging”?
!
Which factor below is causing many of the world's top financial institutions to consider moving their global operations out of London and shift them to other financial capitals within the Eurozone? economic uncertainty high interest rates Brexit high-risk ventures
A key dynamic within any Multi-National Corporation (MNC) is cash and foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics, especially since COVID-19. Within the Caribbean and North American jurisdiction, the economic frameworkis tightly connected with the major Asian economies of China, the United Kingdom and Japan. The Caribbean and the North American economy have been a barometer of the global economic cycle. For both Caribbean and North American economies, many Multi-National Corporations havemade significant investments to reduce the production cost of goods and diversification benefits. Despite the benefits that could materialize, some North American countries have not been resilient through Global market shocks. Given this context, the following questions require research withinthe Caribbean context and current market dynamics since COVID-19. You have been asked to evaluate possible sites for a Caribbean production facility…
What remedy does the IMF recommend to China for controlling the high level of corporate debt? Restructuring companies and reforming corporate governance Reining in the level of borrowing Reducing banking regulation Lowering interest rates
Reasons 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 equatitions
Please use own sentence Companies XYA originated from Malaysia are opening a new branch in Brazil. However, the new branch of XYA is not always able to borrow funds locally. Thus, the new branch is forced to seek international sources of capital. This may due to the subsidiary is new to the market and has not yet built a reputation with local lenders. In such cases, a parent firm (HQ of XYA) can help a subsidiary acquire financing through a back-to-back loan. Describe the process of the back-to-back loan of XYA Company with an aid of an example and diagram.
List down one of the IFI's currently operating in the global market and explain the goal of financial institution. Explain how does it fulfill its goal and how does it not contribute to the improvements of the global economy?
15. Beginning in the 1980s, Interstate Banking became an important issue for banks and the companies they do business with. Finally, in 1997 the United States allowed nationwide banking. Explain the implications of nationwide banking for the banks and for the multination corporations that borrow from the banks.

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