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What advantages might SKB realize from centralizing international cash management and foreign exchange management?
A $1.5 billion Italian multinational manufacturing company has a total of $600 million in intercompany trade flows and settles accounts in 13 currencies.
How does each of the following affect the relationship of stated and effective interest rates?
Standard advice given to firms exporting to soft-currency countries is to invoice in their own currency.
What techniques are available to an MNC with operating subsidiaries in many countries to economize on these short-term assets?
Go to the website of a major international bank such as Citigroup (www.citigroup.com) or Bank of America (www.bankofamerica.com).
If Minnesota Machines desires revenue of $2.5 million from the sale, after paying all factoring charges, what is the minimum acceptable price it should charge?
Texas Computers (TC) recently began selling overseas. It currently has 30 foreign orders outstanding, with the typical order averaging $2,500.
Describe the different steps and documents involved in exporting motors from Kansas to Hong Kong using a con- firmed letter of credit.
What are the basic problems arising in international trade financing, and how do the main financing instruments help solve those problems?
Given the added political and economic risks that appear to exist overseas, are multinational firms more or less risky than purely domestic firms.
Black & Decker, the maker of small, hand-held power tools, finds that when it builds a plant in a foreign country.
The value of a particular foreign subsidiary to its parent company may bear little relationship to the subsidiary’s profit-and-loss statement.
What economic advantages might the two drug companies be expecting from their marriage?
Suppose the worldwide profit breakdown for General Motors is 85% in the United States, 3% in Japan, and 12% in the rest of the world.
Airbus Industrie, the European consortium of aircraft manufacturers, buys jet engines from U.S. companies.
Tandem Computer, a U.S. maker of fault-tolerant computers, is thinking of shifting virtually all the labor-intensive portion of its production to Mexico.
Kao Corporation is a highly innovative and efficient Japanese company that has managed to take on and beat Procter & Gamble in Japan.
Based on information gathered from MSU’s Website, analyze the investment climate in a particular country of your choosing.
A foreign project that is profitable when valued on its own will always be profitable from the parent firm’s standpoint. True or false. Explain.
How can these options be accounted for in the traditional capital-budgeting analysis?
Early results on the Lexus, Toyota’s upscale car, showed it was taking the most business from customers changing from BMW (15%), Mercedes (14%).
Those oil producers that have snapped up overseas refineries—Kuwait, Venezuela, Libya and, most recently, Saudi Arabia.
In December 1989, General Electric spent $150 million to buy a controlling interest in Tungsram, the Hungarian state-owned lightbulb maker.
Suppose England raised its corporate tax rate by one percentage point. How would this increase affect the economics of the IDC-U.K. project?