Questions from Corporate Finance

Q: The decision about where to invest abroad is influenced by behavioral factors

The decision about where to invest abroad is influenced by behavioral factors. a. Explain the behavioral approach to FDI. b. Explain the international network theory explanation of FDI.

Q: What are the advantages and disadvantages of limiting a firm’s activities to

What are the advantages and disadvantages of limiting a firm’s activities to exporting compared to producing abroad?

Q: What is hyperinflation, and what are the consequences for translating foreign

What is hyperinflation, and what are the consequences for translating foreign financial statements?

Q: What are the advantages and disadvantages of licensing and management contracts compared

What are the advantages and disadvantages of licensing and management contracts compared to producing abroad?

Q: What are the advantages and disadvantages of forming a joint venture to

What are the advantages and disadvantages of forming a joint venture to serve a foreign market compared to serving that market with a wholly owned production subsidiary?

Q: Capital budgeting for a foreign project is considerably more complex than the

Capital budgeting for a foreign project is considerably more complex than the domestic case. What are the factors that add complexity?

Q: What are the advantages and disadvantages of serving a foreign market through

What are the advantages and disadvantages of serving a foreign market through a greenfield foreign direct investment compared to an acquisition of a local firm in the target market?

Q: The term “cross-border strategic alliance” conveys different meanings

The term “cross-border strategic alliance” conveys different meanings to different observers. What are the meanings?

Q: Answer the following questions: a. What is meant

Answer the following questions: a. What is meant by the term “governance risk”? b. What is the most important type of governance risk?

Q: An investment agreement spells out specific rights and responsibilities of both the

An investment agreement spells out specific rights and responsibilities of both the foreign firm and the host government. What are the main financial policies that should be included in an investment...