Explain how you advise the industry to handle repatriation

Assignment Help Business Management
Reference no: EM13111017

Q. Navigation Systems Inc. now has total worldwide revenues of over $500 million forecast for this coming year. You have operations in the United States of $300 million with a 10% ROS (return on sales, which is the same as net income on an income statement); operations in Germany of €100 million with an ROS of 12%; and operations in Shanghai, China of 650 million Yuan with an ROS of 8%. You expect to repatriate all the ROS to the United States when available in 12 months.

At your supervisor's request, do the following:

Determine the spot and 12-month forward exchange rates and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.

Express the repatriation using each of the following:

A spot transaction

An outright forward

A foreign-exchange swap

Would there be any use or benefit in using a currency option or currency option? Express each.

Be sure to consider any U.S. corporate taxes that may be due and also whether there are any taxes holidays in effect that may alter the taxes due on repatriation of the profits.

Explain how would you advise the industry to handle the repatriation?

Reference no: EM13111017

Questions Cloud

Determine expected value of distance from starting point : How far away do you expect grasshopper to be after n jumps relative to where it started? Determine the expected value of distance away from grasshopper's starting point.
Data about null hypothesis : How might one know if an error was made in accepting or rejecting the null hypothesis? Do you suppose the nature of the research has an influence on the selection of the significance level? Why or why not?
Determine the partial pressure of ar : Determine the partial pressure of Ar, argon gas in the flask and A flask is filled with 1.20 of argon Ar gas at the temperature of  twenty five degree Celsius.
Case study - mountain states electric service : Mountain States Electric Service is an electrical utility company serving several states in the Rocky Mountains region. It is considering replacing some of its equipment at a generating substation.
Explain how you advise the industry to handle repatriation : Determine the spot and 12-month forward exchange rates and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.
Compare similarities as well as differences concepts : Compare similarities as well as differences concepts and uses of influence and power in organizations, providing specific instances of each from the media and or your own experience.
Why isnt polyploidy a major force in animal speciation : Under the biological species concept, polyploidy is a major force in plant speciation. Why isn't polyploidy a major force in animal speciation?
Determine the molarity of the solution : if potassium bromide of 25.5 grams is dissolved in enough H 2 O to make 1750 mL of solution, determine the molarity of the solution?
Management decision regarding the legal procedure : Prepare an APA formatted paper that imitates your knowledge of the legal forms of business. Specifically, you will make a management decision regarding the legal procedure of business you believe would be appropriate to enable the firm to successf..

Reviews

Write a Review

Business Management Questions & Answers

  Discuss basic managerial strategies

Discuss basic managerial strategies for influencing group behavior, encouraging group problem solving.

  Communication in teams in a workplace

When work teams are created, each team member must have a set of skills that will allow that team member to be successful. Why is communication so important for teams in the work place?

  Explain strategic initiative for international expansion

Explain strategic initiative for international expansion

  Taxation implications for the various business entities

BC Corporation would like your feedback on the taxation implications for the several business entities. They are particularly concerned about how they will be taxed under every entity as they suspect benefits will be large.

  Categories of metrics useful for managing technology

Discuss the different categories of metrics useful for managing technology related projects and explain who should be involved in the development of metrics within an organization?

  Discussion on literature in business

Do the works you are examining address change implicitly or explicitly and which way is more effective for addressing change for a business audience, and explain your answer?

  Define some differences between scientific research

Define some differences between scientific research as well as some informal research that you have done

  Delta air lines exemplify the strategic decisions

How does the experience of Delta Air Lines exemplify the interdependence between strategic decisions of how to compete

  Value of this leadership style

Which of the classical leadership styles exemplifies this company and what is the added value of this leadership style

  Illustrate what marketing considerations need to be made

Identify the type of product/service (convenience, shopping, specialty, unsought) and explain in your own words illustrate what marketing considerations need to be made for your product/service based on this product classification.

  Discuss the strategy to obtain the necessary financing

Discuss the strategy you would use to obtain the necessary financing to support the expected future growth. Include your reasoning for your choice of investor to supply the necessary funds.

  Calculate the reorder point for the notebook binders

Calculate the reorder point for the notebook binders that she stocks.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd