Declining demand for ethanol product

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1. Because of the declining demand for your ethanol product and difficulties in purchasing corn from U.S. farmers at a reasonable price you are considering moving your production facility to a foreign location. In the evaluation of this possibility you want to address two initial concerns. First, should foreign capital be used to meet the cost of relocating your facility? Second, what is the best way to finance this new project if foreign capital is used?

2. Assuming your foreign operation becomes profitable you now need to deal with the issue of repatriation of earnings from the overseas operation back to the U.S. Discuss the issues associated with immediate repatriation of earnings compared to a deferral of earnings repatriation.

Reference no: EM131152597

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