Problem 2
Which of the reasons for the growth of MNCs do you think are the primary reasons for the developments of multinationals in the following industries?
a. Pharmaceutical development and manufacturing?
b. Automobile manufacturing?
c. Metal refining?
d. Hotel operation
e. Commercial backing
f. Energy development
g. Fast food
h. Fashion clothing
Problem 6
How can conflicts exist when a firm sets transfer prices for maximizing overall profit? Could those conflicts arise from different tax rates, import tariffs, imminent changes in exchange rates, and political risks?
Problem 7
Why are risk premium on bounds a useful way of ranking risks for direct investments, but not very useful for making bond purchasing decisions?
Problem 8
Why might country risk depend on diversity of exports as well as on the value of exports versus debt-service payments?