Questions from Multinational Business Finance


Q: What criteria have to be met for a government's seizure of a

What criteria have to be met for a government's seizure of a company's business to be considered ‘'lawful' by international law?

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Q: Answer the following: a. What is the difference between

Answer the following: a. What is the difference between expropriation and creeping expropriation? b. What is the difference between direct and indirect expropriation?

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Q: MNEs strive to take advantage of market imperfections in national markets for

MNEs strive to take advantage of market imperfections in national markets for products, factors of production, and financial assets. Large international firms are better able to exploit such imperfect...

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Q: In deciding whether to invest abroad, management must first determine whether

In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. What are the n...

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Q: Explain briefly how economies of scale and scope can be developed in

Explain briefly how economies of scale and scope can be developed in production, marketing, finance, research and development, transportation, and purchasing.

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Q: A strongly competitive home market can sharpen a firm’s competitive advantage relative

A strongly competitive home market can sharpen a firm’s competitive advantage relative to firms located in less competitive markets. This phenomenon is known as Porter’s “diamond of national advantage...

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Q: The OLI Paradigm is an attempt to create an overall framework to

The OLI Paradigm is an attempt to create an overall framework to explain why MNEs choose FDI rather than serve foreign markets through alternative modes.

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Q: Under the gold standard, all national governments promised to follow the

Under the gold standard, all national governments promised to follow the "rules of the game." What did this mean?

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Q: Financial strategies are directly related to the OLI Paradigm. a

Financial strategies are directly related to the OLI Paradigm. a. Explain how proactive financial strategies are related to OLI. b. Explain how reactive financial strategies are related to OLI.

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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.

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