BUS 629 W6D1

Internationalization theory suggests that Select one: a. FDI is more likely to take place when the costs of negotiating, monitoring, and enforcing a contract with a second firm is higher. Ob. FDI is more likely to occur when prices are high, competition is intense and lower trade barriers as well as exchange rates are strong. O c. FDI occurs in developing countries only in order to boost their economies and improve the country position. d. None of the options are applicable. Next page

“Countertrade is used as a substitute for foreign direct investment”. Discuss

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

Which of the following is a major benefit of international lending? O It eliminates exchange rate risk in financial activities. It requires reducing restrictive international trade practices in the lending and the borrowing countries. It allows both small countries and large countries to apply similar levels of optimal taxes on the international loans. O It allows some lenders to shift their lending to foreign borrowers who are willing to pay higher interest rates on the loans.

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

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.

Investors and MNCs exporting or importing goods and services or making foreign investments throughout the global economy are faced with an exchange rate risk,which can have severe financial consequences on firms profitability,cash flows,and their market value,if not managed appropriately. MNC's use a number of external techniques  of risk(exposure)management and resort to contractual relationships outside thier companies in order to reduce (or redistribute)the risk of foreign exchange losses.What are the determinants of hedging currency risk or foreign exchange exposures which pose risks to MNC's cashflows,competitiveness,marker value and financial reporting.

Why might a foreign government’s policies be closely monitored by investors in other countries, even if the investors plan no investments in that country? Explain how monetary policy in one country can affect interest rates in other countries.

urgent no cahtgpt answer. What is the principal function of the foreign exchange market? A. To transfer purchasing power from one nation to another in exchange for currency B. To maintain fixed exchange rates that remain unaffected by market forces C. To facilitate foreign direct investment D. None of the above

Q. If barriers to international securities markets are reduced, will a country’s interest rate be more or less susceptible to foreign lending and borrowing activities? Explain.

Which of the following statements regarding forfaiting is/are accurate? A. The costs associated with forfaiting are often higher than conventional financing B. Forfaiting is typically a short-term transaction, less than one year C. Forfaiting is readily available to small businesses D. Forfaiting eliminates commercial, political, and foreign exchange risks E. Both a and d are accurate In international trade disputes, this ADR relies on a third-party doing their analysis alone and imposing a binding decision A. Arbitration B. Mediation C. Litigation D. Conciliation

A sudden change in power can result in a regime that is hostile to foreign investment that is a primary example of an (n) _______ barrier ?

The complexity posed by differences in the cultural, political, legal, and economic environments creates a so-called “liability of foreignness.” This idea holds that foreign companies, because of their poorer familiarity with local conditions, incur additional costs. In theory, the liability of foreignness makes IB activity too expensive. In practice, companies offset this liability by capitalizing on their unique advantages as well as selecting the mode of international business that best reflects their resource profile and risk tolerance--Always in the effort toward minimizing the intrinsic higher costs of international operations. The higher costs of international operations, executives point out, are driven by things as varied as the cost of legally establishing businesses, real estate costs, customs duties, and translation costs. Managing these costs is complicated by the report that    _53_______%___ of global CEOs are concerned about the impact of    __bribery and…