Questions from Corporate Finance

Q: Answer the following questions: a. What is OPIC?

Answer the following questions: a. What is OPIC? b. What types of political risks can OPIC insure against?

Q: The following operating strategies, among others, are expected to reduce

The following operating strategies, among others, are expected to reduce damage from political risk. Explain each, and how it reduces damage. a. Local sourcing. b. Facility location. c. Control of tec...

Q: Define the following terms: a. Transfer risk.

Define the following terms: a. Transfer risk. b. Blocked funds.

Q: Identify and explain the main types of cultural and institutional risks,

Identify and explain the main types of cultural and institutional risks, except protectionism.

Q: What is the primary difference between losses from transaction exposure, operating

What is the primary difference between losses from transaction exposure, operating exposure, and translation exposure?

Q: Respond to the following: a. Define protectionism and identify

Respond to the following: a. Define protectionism and identify the industries that are typically protected. b. Explain the “infant industry” argument for protectionism.

Q: a. Why should a foreign project be evaluated from both a

a. Why should a foreign project be evaluated from both a project and a parent viewpoint? b. Which viewpoint, project or parent, gives results closer to the traditional meaning of net present value in...

Q: a. What are the traditional methods for countries to implement protectionism

a. What are the traditional methods for countries to implement protectionism? b. What are some typical non-tariff barriers to trade? c. How can MNEs overcome host country protectionism?

Q: The United States has a law prohibiting U.S. firms

The United States has a law prohibiting U.S. firms from bribing foreign officials and business persons, even in countries where bribery is a normal practice. Some U.S. firms claim this places the Unit...

Q: As a firm evolves from purely domestic into a true multinational enterprise

As a firm evolves from purely domestic into a true multinational enterprise, it must consider (1) its competitive advantages, (2) its production location, (3) the type of control it wants to have over...