Explain the political events in a host country, Financial Management

Assignment Help:

Discuss the different ways political events in a host country may affect local operations of an MNC.

Answer:  The answer can be organized based on the three types of political risk: that are, transfer risk, operational risk, and control risk. Transfer risk takes place from the uncertainty about cross-border flows of payments, capital, and know-how and so on. Operational risk takes place from the uncertainty about the host country’s policies influencing the local operations of MNCs. Control risk takes place from the uncertainty about the host country’s policy as regards to the ownership and control of local operations of MNCs.


Related Discussions:- Explain the political events in a host country

How could we project exchange rates, How could we project exchange rates in...

How could we project exchange rates in order to be able to forecast exchange differences? If someone knew how to predict exchange rates, they would be a millionaire and would n

What are financial crises in financial markets, What are financial crises i...

What are financial crises in financial markets? Financial crises: Financial crises are described as major disruptions in financial markets which are characterised by shar

Determine the key points in the turnbull report, Key points in the Turnbull...

Key points in the Turnbull Report: Have a defined process for review of effectiveness of internal control. Review regular reports on internal control. Consider key

Performance evaluation, Performance evaluation One can determine this b...

Performance evaluation One can determine this by comparing the cash flow from assets and cost of capital. 1. Cash flow from assets Cash flow from assets is calculated

Determine the term- component cost and composite cost, Determine the term- ...

Determine the term- Component Cost and Composite Cost A company may contemplate to raise desired amount of funds by different sources comprising preferred stock, debentures and

Explain contingent exposure, Explain contingent exposure and define the adv...

Explain contingent exposure and define the advantages of using currency options to manage this type of currency exposure. Answer: Companies may come across a state where they m

Valuation of bonds and shares, three years ago, SSSG Ltd. issued 10 years $...

three years ago, SSSG Ltd. issued 10 years $1000 bonds with a 7% coupon rate paid semi-annually, at par value. the market currently requires a 9% yield. what was the price of bond

Determination of credit terms, Determination of Credit Terms:- The sec...

Determination of Credit Terms:- The second feature of receivable management, subsequent to setting the credit standards and assessment of credit worthiness of the customers, i

Operating cycle, how to write a vegetation operating cycle

how to write a vegetation operating cycle

Define how competitive is the market for banking services, How competitive ...

How competitive is the market for banking services? A: With above 7,000 banks and thrifts in the U.S., banking is one of the so many competitive industries in the world. Refer

Write Your Message!

Captcha
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