Limit the effects of political risk

Assignment Help Operation Management
Reference no: EM131087203

(a) Outline the financial benefits and disadvantages inherent in a demerger and indicatecircumstances where it might be an appropriate course of action.

(b) East Ltd has been approached by a foreign government which is privatising its country?srailway system. This country is politically unstable. It would like East Ltd to sign up for afour year joint venture which would require an initial investment by East Ltd of approximatelyGHC200 million. It is possible that the contract could be renegotiated at the end of the fouryear period. This is the first time that East Ltd?s management has been asked to consider aninvestment overseas.Required:Explain to East Ltd?s management:

(i) The strategies that East Ltd could employ to limit the effects of political risk within this proposal.

(ii) How a Net Present Value (NPV) appraisal for this overseas investment might proveproblematic for East Ltd compared to a normal Ghanaian-based appraisal.

Reference no: EM131087203

Questions Cloud

Use the wilcoxon test to test the appropriate hypotheses : Exercise 39  Scientists and engineers frequently wish to compare two different techniques for measuring or determining the value of a variable. In such situations, interest centers on testing whether the mean difference in measurements is zero.
Investment process after portfolio manager : 1. What is the next step in an investment process after a portfolio manager decides on how many shares of a stock to buy and sell? Who is involved with this step?
Both a gravimetric and a spectrophotometric method : Both a gravimetric and a spectrophotometric method are under consideration for determining phosphate content of a particular material. Twelve samples of the material are obtained, each is split in half, and a determination is made on each half usi..
Effective annual rate of interest : The Lucky Loan Company will lend you $10,000 today with terms that require you to pay off the loan in thirty-six monthly installments of $500 each. What is the effective annual rate of interest that the Lucky Loan Company is charging you?
Limit the effects of political risk : The strategies that East Ltd could employ to limit the effects of political risk within this proposal. How a Net Present Value (NPV) appraisal for this overseas investment might proveproblematic for East Ltd compared to a normal Ghanaian-based appr..
Necessary for each one to diagnose a particular problem : A random sample of 15 automobile mechanics certified to work on a certain type of car was selected, and the time (in minutes) necessary for each one to diagnose a particular problem was determined, resulting in the following data:
What is the height of the liquid : what is the height of the liquid?
How would you address the accounting effects : How would you address the accounting effects of this approach with upper management? Also, in your view, what would be the next steps for improvement that the company would need to undertake in order to correct the problem?
Oxygen and carbon dioxide partial pressure : The accompanying data is a subset of the data reported in the article "Synovial Fluid pH, Lactate, Oxygen and Carbon Dioxide Partial Pressure in Various Joint Diseases" (Arthritis and Rheumatism, 1971: 476-477).

Reviews

Write a Review

Operation Management Questions & Answers

  Principles of bureaucracy-design organizational hierarchy

How can the principles of bureaucracy help managers design the organizational hierarchy? When does bureaucracy become a problem in an organization? What can man- agers do to prevent bureaucratic problems from arising?

  Copyright law has always included elements

Copyright law has always included elements, such as the fair-use exemption, that make it difficult to apply. Explain how the Internet has made this worse by citing specific examples. In discussing this question, be sure to include what the fair use e..

  Forming a cross-cultural project team

Which do you think is a more powerful determinant of human behavior cultural factors or individual differences? Describe how you might use the Big Five personality traits when forming a cross-cultural project team.

  Fixing an interest rate is pro-cyclical

The textbook says that fixing an interest rate is pro-cyclical, but the Fed now uses something like a Taylor Rule, which targets an interest rate. Why isn’t this a contradiction?

  What rate of return must you earn on

Imagine than your goal is to retire 34 years from today with $1,000,000 in savings .Assuming you currently have $ 5,000 in savings, what rate of return must you earn on that saving to hit your goal?

  Firms liability for decreasing alex responsibilities

Kayla, a supervisor, recently hired a new manager, Alex, but has received complaints from customers that they cannot n understand him when they speak to him on the telephone. Alex is a Romanian employee visiting from the company’s Romanian office and..

  Do you know your organizations mission statement

It’s hard to accomplish anything without a plan. Whether you’re coaching a football team, cooking Thanksgiving dinner, or running a small business, you need a strategic plan. Strategic planning is a process that brings to life the mission and vision ..

  Savings and investment process

Consider your newly acquired knowledge from this course. Identify why you believe Savings and Investment Process was most relevant to you and your career plans. Provide a rationale.

  Purchased by both private and public organizations

Using examples that are purchased by both private and public organizations (like uniforms, trucks, and budget-tracking software), weigh the advantages and disadvantages of doing business with the federal government,

  Sensory meaning-semantic meaning and episodic memory

For this discussion, select three of the forms of meaning or memory (sensory meaning, semantic meaning, episodic memory, or flashbulb memories) discussed in this unit's readings, and respond to the following: How could these forms of memory be used t..

  Determine the level of responsibility management

From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response.

  Various defences to enforcement of contract

Discuss the various defences to the enforcement of a contract that would cause the alleged contract to be VOIDABLE. Give a specific example of each type of defence and explain why you believe the example to represent when a contract would be voidable..

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