Questions from Multinational Business Finance

Q: What – according to financial theory – is the value of a

What – according to financial theory – is the value of a firm?

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 seven most common political risk mitigation strategies employed by

What are the seven most common political risk mitigation strategies employed by multinational enterprises?

Q: How does currency hedging theoretically change the expected cash flows of the

How does currency hedging theoretically change the expected cash flows of the firm?

Q: Describe four arguments in favor of a firm pursuing an active currency

Describe four arguments in favor of a firm pursuing an active currency risk management program?

Q: Describe six arguments against a firm pursuing an active currency risk management

Describe six arguments against a firm pursuing an active currency risk management program?

Q: What are the four main types of transactions from which transaction exposure

What are the four main types of transactions from which transaction exposure arises?

Q: What does the word translation mean? Why is translation exposure called

What does the word translation mean? Why is translation exposure called an accounting exposure?

Q: What are the major differences in translating liabilities between the current rate

What are the major differences in translating liabilities between the current rate method and the temporal method?

Q: Where do you believe that most company's would prefer currency translation imbalances

Where do you believe that most company's would prefer currency translation imbalances or adjustments to go, to earnings or consolidated equity? Why?