Questions from Corporate Finance

Q: What are the advantages of a free trade zone? Are there

What are the advantages of a free trade zone? Are there any disadvantages?

Q: Explain the difference between the “transaction motive” and the “

Explain the difference between the “transaction motive” and the “precautionary motive” for holding cash.

Q: Capital projects provide both operating cash flows and financial cash flows.

Capital projects provide both operating cash flows and financial cash flows. Why are operating cash flows preferred for domestic capital budgeting, but financial cash flows given major consideration i...

Q: The operating cash cycle of a multinational firm goes from cash collection

The operating cash cycle of a multinational firm goes from cash collection from customers, cash holding for anticipated transaction needs (the transaction motive for holding cash), possible cash repos...

Q: Electro-Beam Company generates and disburses cash in the currencies of

Electro-Beam Company generates and disburses cash in the currencies of four countries, Singapore, Malaysia, Thailand, and Vietnam. What would be the characteristics you might consider if charged with...

Q: During the era of the French franc, France imposed a rule

During the era of the French franc, France imposed a rule on its banks and subsidiaries of international companies operating in France that precluded those subsidiaries from netting cash flow obligati...

Q: What is the difference between a foreign branch and a foreign subsidiary

What is the difference between a foreign branch and a foreign subsidiary of a home-country bank?

Q: Answer the following: a. How can an MNE

Answer the following: a. How can an MNE diversify operations? b. How can an MNE diversify financing?

Q: Each of the following factors is sometimes a constraint on the free

Each of the following factors is sometimes a constraint on the free movement of funds internationally. Why would a government impose such a constraint? How might the management of a multinational argu...

Q: What does this term mean? Why would unbundling be needed for

What does this term mean? Why would unbundling be needed for international cash flows from foreign subsidiaries, but not for domestic cash flows between related domestic subsidiaries and their parent?...