explain how a US company's analysis of a proposed project located in a foreign country differs from analysis for a similar project located in the US?
In a foreign country there are a lot of extra uncertainties compared to US such as expropriation of assets by the foreign government, local culture and customs, taxation, withholding of revenues by the government for a specified period, political risk, exchange rate risk, understanding of local market. Hence the analysis is much more complex than a similar project in the US.
explain how a US company's analysis of a proposed project located in a foreign country differs...
explain how a US company's analysis of a proposed project located in a foreign country differs from analysis for a similar project located in the US?
(2)(a)Identify and the briefly explain the motivation for direct foreign investment. (b)A US based MNC plans to invest in a new project either in the U.S. or in Mexico. Currently 75% of its investment is in the US. Historical records show that the variability of returns on this existing investment measured by the standard deviation is 0.08. A four year forecast of the strategic features of the proposed new project are summarized below as follows: If located in U.S. 10%...
Given the following information: Canada is your home country and the US is a foreign country. The spot exchange rate St is, CA$ 1.30 = US$ 1 Forward exchange rate Ft is, CA$ 1.32 = US$ 1 Expected future exchange rate Set+1 is, CA$ 1.33 = US$ 1 Interest rate in Canada is, rt = 5 % Interest rate in the US is, rt = 3% (i) If you want to borrow from the US and invest in Canada what...
?Direct foreign investment would typically be welcomed if: ?people from the country of the company's headquarter are transferred to the foreign country to work at the subsidiary. all of the options listed none of the options listed the products to be produced are going to be exported ?the products to be produced are substitutes for other locally produced products.
Choose a project in the US or Spain, (1) describe the project and explain why environmental impact assessment (EIA) were conducted; (3) describe the areas of EIA study; (4) highlight any mitigation measures proposed for the project.
1. Suppose that PPP holds between Japan (the home country) and the US (the foreign, starred country), so that in logs: se+pi-P-0 Also suppose that UIP holds. Money demand in Japan is given by: and in the US by (a) Derive the fundamental equation of the monetary model of the (log) exchange rate. (b) Suppose that the relative money supply in logs is given by m -m, and that = 0.5 + 0.82t-1 + Eg, tencie with mean zero. Solve...
61. Jim has foreign income. He earns $26,000 from Country A which taxes the income at a 20 percent rate. He also has income from Country B of $18,000. Country B taxes the $18,000 at a 10 percent rate. His US taxable income is $90,000, which includes the foreign income. His US income tax on all sources of income before credits is $19,000. What is his foreign tax credit? a. $6,500 b. $7,000 C. $9,289 d. $19,000 e. Jim does...
Currencies – U.S. dollar foreign-exchange rates. May 5, 2011 Country/currency………..in US$..............per US$ British Pound……………….1.5347…………….0.6516 Norwegian Kroner……….0.1690……………..5.9173 Thai Baht……………………..0.0310……………..32.250 Mr. Charles imports light bulbs from Norway to the United States. He has a contract to purchase from a Norwegian firm 10,000 light bulbs that he plans to sell in Chicago in 30 days. Assuming that futures trading exists between U.S. dollars and Norwegian Kroner, how can Mr. Charles use such a market to hedge foreign currency risk? a. Contract to sell...
Foreign Currency Analysis Country Monetary Unit Date 1 Dollar per Unit of Foreign Currency Date 2 Dollar per Unit of Foreign Currency Invoiced Units Increase/ (Decrease) Britain Pound 9/17/2014 0.6162 10/17/2014 0.6245 10,000 Canada Canadian dollar (CAD) 10,000 China Renminbi 10,000 France Euro 10,000 Japan Japanese yen 10,000 Mexico Mexican peso 10,000 he purchases order is submitted to your company when the goods were delivered but will be paid 30 days from that date in the currency you have...
The US Department of Health and Human Services (HHS) has proposed national goals for health. Explain the overarching goals of “Healthy People 2020” and discuss as a DNP practitioner how you may assist in meeting these proposed national goals for health.