--%>
Assignment Help - homework help

Financial and Operational measures of MNC

State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?

E

Expert

Verified

a) MNCs must explicitly include political risk in the capital budgeting procedure and adjust the project’s NPV accordingly.

b) MNCs may form the joint-ventures with the local partners or form a consortium along with other MNCs in order to decrease the risk.

c) MNCs may purchase the insurance against the political risk from Lloyd’s, OPIC, and so on.

   Related Questions in Financial Accounting

  • Q : Accounting Treatment of Expenditures

    Describe the term Accounting Treatment of Expenditures? Why it is used.

    		•
  • Q : Discuss to what extent does risk and

    to what extent does risk and term structure affects interest rates of financial instruments.

    		•
  • Q : Help Otobai Motor Company is currently

    Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%.

    		•
  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

    		•
  • Q : Darwin and Moths Conduct an internet

    Conduct an internet search by using the terms Darwin and Moths ("Darwin Moths", without the quotes). Learn about this famous illustration of Darwin's theory of natural selection, and write a brief paragraph describing it.

    		•
  • Q : Meaning of Electronic Fund Transfer

    What is the meaning of Electronic Fund Transfer. Briefly describe it.

    		•
  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

    		•
  • Q : Factors for surge in the international

    List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

    		•
  • Q : Applications of Matlab in Embedded

    Do you face difficulty with embedded system problems using matlab? Do you require help in embedded system assignment and project? We have team of tutors who are highly qualified and practiced in embedded system using matlab. They have vast industrial knowledge of matlab. W

    		•
  • Q : Essay-People Dependent on technology

    PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h

    		•