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?
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?
Homework Answers
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.
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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?
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 base...
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61. Jim has foreign income. He earns $26,000 from Country A which taxes the income at...
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(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%...
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. $19,000 e. Jim does...
Given the following information: Canada is your home country and the US is a foreign country. The spot exchange rate St is, CA$ 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...
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Explain how growth and shrinkage of actin filaments differs from that of microtubules? Explain 1) the process by which collagen is synthesized and secreted, and 2) how loss of collagen affect the human body.
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