--%>

advantages and the risks of being a MNC

What are some of the primary advantages and the risks when a corporation has operations in countries other than its home country?

E

Expert

Verified

Advantages: Foreign operations may reduce a company’s labour or material costs, and may increase its sales.

Disadvantages: Risks include possible seizure of company assets by a foreign government or possible cultural blunders that can lead to lost sales and exchange rate risks.

   Related Questions in Financial Management

  • Q : United States imports more than it

    foreign countries to finance its current account deficits

  • Q : Example to lay off the swap to an

    Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance

  • Q : Considerations of theory of comparative

    What considerations might restrict the extent on which the theory of comparative advantage is realistic?Originally the theory of comparative advantage was advanced by the nineteenth century economist David Ricardo as an explanation for why natio

  • Q : Work of the financial manager in a

    Explain the work of the financial manager in a business firm.

  • Q : Load Bitmap at Dialog background in an

    Explain the way to load Bitmap at Dialog background within an MFC application?

  • Q : Describe the concept of the Sharpe

    Describe the concept of the Sharpe performance measure.The Sharpe performance measure (SHP) is a risk-adjusted performance measure. This is describing as the mean excess return to portfolio above the risk-free rate divided by the portfolio's sta

  • Q : What can a financial institution

    What can a financial institution frequently do for a DEU (deficit economic unit) that it would have trouble doing for itself if the DEU were to deal directly with SEU?

  • Q : Closed-end country funds trade at

    Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit

  • Q : State the term dispersion trading State

    State the term dispersion trading?

  • Q : Three career opportunities in the field

    Describe the three career opportunities in the field of finance.