1. In inflationary periods for input prices, what happens to earnings when firms change from first-in first-out (FIFO) to last-in first-out (LIFO) inventory accounting? How does the market react? Why is this the case?
2. As a rule, cross-listings for companies with a home listing in a mature capital market do not offer material benefits. Discuss how and why this might be different for companies based in emerging capital markets.