Explain method of reducing exposure to existing country risk

Assignment Help Financial Management
Reference no: EM13935536

1. Reducing country risk. Explain some methods of reducing exposure to existing country risk, while maintaining the same amount of business within a particular country.

2. Managing country risk. Why do some subsidiaries maintain a low profile as to where their parents are located?

3. Country risk analysis. When Jerrik ApS (Danish) considered establishing a subsidiary in Zenland, it performed a country risk analysis to help make the decision. It first retrieved a country risk analysis per- formed about one year earlier, when it had planned to begin a major exporting business to Zenland firms. Then it updated the analysis by incorporating all current information on the key variables that were used in that analysis, such as Zenland's willingness to accept exports, its existing quotas and existing tariff laws. Is this country risk analysis adequate? Explain.

Reference no: EM13935536

Questions Cloud

How to write a constructor : I'm trying to draw a diagram for the following problem statement. I need to create the function in JavaScript and call it in an HTML file.
Explain the microassessment of country risk : Microassessment. Explain the microassessment of country risk. How could such an assessment be used instead to adjust a project's estimated cash flows?
Identify current diversity practices in the organisation : The report should be based on the learner's workplace or an organisation they are familiar with. If students do not have access to an organisation a case study is contained within your learning materials that you may wish to use.
What force must be exerted by the ground : What force F must be exerted by the ground on each of the main braked wheels at A and B to counteract the turning effect of the two propeller thrusts? Neglect any effects of the nose wheel C, which is turned 90° and unbraked.
Explain method of reducing exposure to existing country risk : Reducing country risk. Explain some methods of reducing exposure to existing country risk, while maintaining the same amount of business within a particular country.
Which does not belong with the others : Which of the following provides taxonomic information that includes the others? Which of the following is most useful in determining whether two organisms are related?
Create a script that requires o accept terms and conditions : create a script that requires yours visitors to accept your terms and conditions before proceeding, by selecting a check box.
Explain how pressure in autoclave can influence temperature : Compare and contrast the microbial destruction ability of moist vs. dry heat. Using Principle of destruction, procedure for destruction, thermal death time, apparatus required, and effectiveness.
How could actions have reduced some forms of country risk : Reducing country risk. MNCs such as Alcoa, DuPont, Heinz and IBM donated products and technology to foreign countries where they had subsidiaries. How could these actions have reduced some forms of country risk?

Reviews

Write a Review

Financial Management Questions & Answers

  Fast growing technology company

Starskeep, Inc., is a fast growing technology company. The firm projects a rapid growth of 40 percent for the next two years and then a growth rate of 20 percent for the following two years. After that, the firm expects a constant-growth rate of 8 pe..

  What circumstances or conditions could a high current ratio

Generally, a high current ratio is an indicator of good liquidity. Under what circumstances or conditions could a high current ratio be an indicator of problems with the company's current assets?

  Present value for various compounding periods

Present Value for Various Compounding Periods. Find the present value of $775 due in the future under each of the following conditions. Round your answers to the nearest cent.

  What is the exact real rate

Treasury bills are currently paying 6 percent and the inflation rate is 2.8 percent. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate real rate % What is the exact r..

  Considering both federal and state personal taxes

George and Margaret Wealthy are in the 42 percent tax bracket, considering both federal and state personal taxes. Norman Briggs, then CEO of Community General Hospital, has been aggressively pursuing the couple to contribute $400 thousand to the hosp..

  Compact fluorescent lamps-make financial sense

Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $.46 and lasts for 1,000 hours. If you require a 11 percent return, at what cost per kilow..

  Big bass sound is thriving music business

Big Bass Sound (BBS) is a thriving music business. You would like to understand the market risk of BBS and are looking to find its Beta of the Assets. BBS' Beta of Equity is 3.9, the beta of debt is 0.4, and the tax rate is 34%. BBS has 273 in debt o..

  Specializing in the sale of opuses solely depicting

Assume that a department store, specializing in the sale of opuses solely depicting Domus Italica, has 6years remaining on its lease in a mall. Rent is $2,500 per month, 72payments remain, and the next payment is due in a month. The mall’s owners, An..

  What is the intrinsic value of firm of projected dividends

Whole Foods’ current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Whole Foods’ beta is 0.85. The current riskfree rate is 2.9%, and the expected return on the market portfolio is 7.4%. what is the intrinsi..

  Evaluating proposed expansion-incremental free cash flow

Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently, it plans to add two additional tank cars to its fleet four years from now. When evaluating the proposed expansion, what incremental free cash flows sh..

  What is the break-even quantity

Company has fixed operating cost of $300,000 and variable cost of $50 per unit. If it sells the product for $75 per unit what is the break-even Quantity?

  Critiques the short-term finance policy

Write a one page memo that critiques the short-term finance policy of each company and explain which company has the better short-term finance policy. Justify your response.

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