identify 2 or 3 favorable economic and political factors as to why an American based mnc would be attracted
Economicand political factors :
1. Lower interest rates in Mexico as compared to US would
appreciate Peso and depreciate dollar in future making investment
in Peso more favourable as the firm will make profit due to
currency exposure in PESO. This will help to earn more
dollar.
2.Lower inflation in Mexico would favour investment as lower
inflation strengthens the local currency as compared to foreign
currency. So investing in Peso will create profits in future.
3. Tax benfits: Lower taxes or tax incentives provided by the
localgovernment might make an investment very attractive as the
retained earnings of a firm increases.
Please Discuss in case of Doubt
Best of Luck. God Bless
identify 2 or 3 favorable economic and political factors as to why an American based mnc...
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