Question

Part A)Discuss cost-related motives for direct foreign investments. Part B) Why do host governments prefer more...

Part A)Discuss cost-related motives for direct foreign investments.

Part B) Why do host governments prefer more direct foreign investments?

Homework Answers

Answer #1

A) It is one of the important motives in order to reduce the exposure of cost to domestic economic conditions. MNC (Multinational Corporation) may effectively stabilize its total amount of cash flows and risks may be alleviated in a better manner. Hence, it is desirable for minimizing costs of financing the company.

B) The host governments prefer more of direct foreign investments with the reason that higher amount of foreign currency may be accomplished which is quite useful in order to attain stability in the domestic economy as a whole. Furthermore, making investments and earning adequate returns in foreign currency is more helpful for developing nations.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are the motives for direct foreign investments? Assume you have a foreign target in 3...
What are the motives for direct foreign investments? Assume you have a foreign target in 3 different countries, what kind of valuation process will you do? Please explain in detail.
What should host countries do to increase foreign direct investments (FDIs) in their nations? A) Restrict...
What should host countries do to increase foreign direct investments (FDIs) in their nations? A) Restrict certain geographic areas to export businesses B) Rely on the investing firm to improve local conditions for domestic businesses C) Reduce tax incentives and loans D) Improve workforce education and job training
Why do governments place restrictions on immigration? Discuss examples of disputes about immigration (more or fewer...
Why do governments place restrictions on immigration? Discuss examples of disputes about immigration (more or fewer restrictions, refugee resettlement) that have occurred in recent years.
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell Boeing V-22 Program, a strategic alliance between Bell Helicopter, a Textron Company, and the Boeing Company,1,2 announced the V-22 Osprey tiltrotor will be featured at the Dubai International Air Show in the United Arab Emirates (UAE) from November 13 to 17, 2011. The Air Show, held biennially, is organized in cooperation with the government of Dubai, the Department of Civil Aviation, and Dubai International...
3. Fewer than 1% of all US firms trade outside of the country, and about 60%...
3. Fewer than 1% of all US firms trade outside of the country, and about 60% of those that do so, only trade with one other country. What are some potential reasons for this (all of the following are true, except one): a. Lack of knowledge, data, and experience. b. Most companies in the US are small and medium sized. c. The size of the US consumer market is large, thus companies may be happy to operated domestically only. d....
Can I have your opinion on this research and possible correction? The global economy and government’s...
Can I have your opinion on this research and possible correction? The global economy and government’s ability to control its country’s currency. Definition of terms Global economy is an economic interdependence established between the most influential countries that drives the worldwide economic environment. It is also the aggregate economic output, movement and influence of all countries. (My Accounting course). Currency is the medium of exchange for goods and services. In short, its money, in the form of paper or coins,...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational leadership b. Moral manager c. Social learning theory d. Moral intensity [The following information applies to the question.] In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On August 29, 2005, KPMG admitted to criminal wrongdoing and...
What is Medicare Part C? Provides the aged with home health care Provides the aged with...
What is Medicare Part C? Provides the aged with home health care Provides the aged with prescription drugs Enables low-income aged to participate in Medicaid Provides a voluntary managed care option for the aged How is Medicaid financed? It is financed entirely by the federal government. It is financed entirely by the state. States receive the same percentage of federal support. States with lower per capita incomes receive a greater percentage of federal support If a healthcare system is "free"...
Outline and answer all discussion questions following case description in details. (Do not attempt to solve...
Outline and answer all discussion questions following case description in details. (Do not attempt to solve if you can not fulfill all the requirements!!!!) THE ENERGY BAR INDUSTRY In 1986, PowerBar, a firm in Berkeley, California, single-handedly created the energy bar category. Positioned as an athletic energy food, it was distributed at bike shops and events that usually involved running or biking. The target segment was the athlete who needed an efficient, effective energy source. Six years later, seeking to...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT