How political risk factor adversely affect the profitability

Assignment Help Financial Management
Reference no: EM13935564

1. Key West Co. (a US company) exports highly advanced phone system components to its subsidiary shops on islands in the Caribbean. The components are purchased by consumers to improve their phone systems. These components are not produced in other countries. Explain how political risk factors could adversely affect the profitability of Key West Co.

2. Using the information in question 1, explain how financial risk factors could adversely affect the profitability of Key West Co.

Reference no: EM13935564

Questions Cloud

Differentiate between western blotting and southern blotting : Differentiate between an intermediate host and a definitive host and give an example of what parasite stage is seen in humans as intermediate and definitive hosts.
Keeping problems hidden from others : Give an example of "keeping problems hidden from others" that you have observed in your own organization. (The organization used in this example may be your current or past employer, a volunteer organization, your church
Compare the investment conditions for foreign companies : Selecting articles from this site, compare the investment conditions for foreign companies wishing to invest in the European Union with the conditions for Brazil.
Discuss the five key dimensions of a hospitality experience : Distinguish the difference between a service customer experience and a hospitality customer experience. Discuss the five key dimensions of a hospitality experience. Show how customer service is related to the customer experience
How political risk factor adversely affect the profitability : These components are not produced in other countries. Explain how political risk factors could adversely affect the profitability of Key West Co.
Identify five modes of action of antimicrobial drugs : Explain how capsules and cell wall components contribute to pathogenicity. Discuss the causes of symptoms in fungal, protozoan, helminthic, and algal diseases. Name the microbes that produce most of the antibiotics.
Practice in strategic human resource management : Through the preparation of a literature review, research best practice in strategic human resource management (SHRM). a) compare/ contrast and comment at least 5 SHRM models, framework and/or concepts.
Explain how a terrorist attack might affect an mnc : Given the information in question 1, do you expect that Key West Co. is more concerned about the adverse effects of political risk or of financial risk? Explain how a terrorist attack might affect an MNC.
Is there a better way to more precisely incorporate the risk : Rockford Ltd plans to expand its successful business by establishing a subsidiary in France. Is there a better way to more precisely incorporate the country risk of concern here?

Reviews

Write a Review

Financial Management Questions & Answers

  How much is the effective annual rate

We receive a mortgage loan for 20 years.. The mortgage rate is 6% per annum. Additionally, the monthly payment we ought to make to the bank to amortize the loan is $2, 500. Secondly, compute the remaining amount we still owe the bank, if we pay an ad..

  Define the terms demand deposits and compensating balance

Define the terms Demand deposits, Compensating balance, Disbursement float, Deposit float, Lockbox, Wire transfer, Depository transfer check, Zero-balance system, Draft and Automated clearinghouse.

  After the cost of the options is taken into account

A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options are worth $11, $14, and $18. What is the maximum net gain (after the cost of the options is taken into account)?..

  Discussed three theories of behavioural finance

Discussed three theories of behavioural finance that may influence investment in Ponzi scheme. Discuss 3 reasons why Ponzi scheme may be operated by and among the educated

  What was approximate real rate of return on this investment

Christina purchased 200 shares of stock at a price of $62.30 a share and sold them for $70.25 a share. She also received $148 in dividends. If the inflation rate was 4.2 percent, What was her approximate real rate of return on this investment?

  Outstanding debt-preferred stock and common stock

Suppose that JML Corp. has outstanding debt, preferred stock, and common stock. For this year, the firm expects to have sales of $5,000 million, cost of goods sold of $3,500 million, operating expenses (including depreciation expenses) of $650 millio..

  Across an asset that pays no dividends

You have come across an asset that pays no dividends but has an expected price of $100 an year from now. The correlation of this asset with the market portfolio is believed to be 0.5. The standard deviation of the return is believed to be 30%. Accord..

  The yield to maturity on a bond

The yield to maturity on a bond is:

  Existence of just four large cpa firms-service virtually

The existence of just four large CPA firms that service virtually all of the major industrial and financial companies and thus dominate the accounting profession has led to criticism through the years. What dangers do you see from the dominance of a ..

  Compute the projects annual net cash flows

The Taylor Mountain Uranium Company currently has annual cash revenues of $1.2 million and annual cash expenses of $700,000. Depreciation amounts to $200,000 per year. These figures are expected to remain constant for the foreseeable future (at least..

  Defined contribution pension plans

Compare and contrast investment objectives and constraints for defined benefit and defined contribution pension plans

  The evening telegram states bond price

The Evening Telegram states a bond price at $97.00, while it yields is reported at 6%. If there are 7 years left to maturity on this bond, what then, is this bond's coupon? Is it $48, $50, $53, or $55?

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