Chapter 14 Multinational Capital Budgeting Lecture Outline Subsidiary versus Parent Perspective Tax Differentials Restricted Remittances Excessive Remittances Exchange Rate Movements Input for Multinational Capital Budgeting Multinational Capital Budgeting Example Background Analysis Factors to Consider in Multinational Capital Budgeting Exchange Rate Fluctuations Inflation Financing Arrangement Blocked Funds Uncertain Salvage Value Impact of Project
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macro business environment - To explain the terms SWOT‚ PEST‚ BPPEST‚ TOWS and SWOC in environmental analysis. - To describe the various business environmental forces - To state the strategic role of the environment on business performance Section 1: An Overview of Business Economics 1.1. Introduction Business economics is concerned with a total approach to organisational existence and activities. According to G.J de Cronje‚ in his popular book‚ “Introduction to Business Management”
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Summarize the globalization debate. What are the major interest groups in the world economy? How are they affected by different elements of globalization? 2. Who benefits and who loses from a shift in jobs to low-wage economies? Consider this question from the perspective of consumers‚ labour‚ technological change‚ firms‚ nation-states. Are the net benefits likely to be positive? 3. Identify and evaluate the sources of conflict between pressures on companies to operate globally and the desire
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The Rights and Responsibilities of Multinational Companies in a Globalized World Multinational companies are the biggest players in economy today‚ replacing the role states used to play in the past. Through globalization‚ the multinational companies become increasingly important in our world economy. Nowadays‚ more than half of the top economies in the world are led by multinational private companies and the international investment comes increasingly from private sources. Foreign Direct Investment
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exchange rates. However‚ for multinational companies‚ dealing with very large amounts of money in their transactions‚ the rise or fall of a currency can mean getting a surplus or a deficit on their balance sheets. What types of exchange rate risks do multinational companies face? One type of exchange risk faced by multinational companies is transaction risk. If a company sells products to an overseas customer it might be subject to transaction risk. If a UK company is expecting a payment from a
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CHAPTER 1 MULTINATIONAL MANAGEMENT IN A CHANGING WORLD Learning Objectives 1. Define multinational management 2. Understand the characteristics of a multinational company 3. Understand the nature of the global economy and the key forces that drive globalization 4. Know the basic classification of the world’s economies 5. Be able to identify the characteristics of the next generation of multinational managers Introduction 6. Businesses of all sizes‚ whether from the old or new
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Globalization What is globalization? Its main components? What are the drivers of globalization? How is the global economy changing? How is the above situation affecting Vietnamese companies’ operation? How should Vietnamese companies prepare to compete successfully globally? Present a case of a Vietnamese company who is active in globalizing its activities. 2. Topic 2: Difference in culture What is culture? What are the determinants of culture? How can culture influence international business
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efficiency of the world economy Local content requirements * A local content requirement demands that some specific fraction of a good be produced domestically * can be in physical terms or in value terms * Local content requirements benefit domestic producers and jobs‚ but consumers face higher prices Trade Policy * Administrative trade polices - bureaucratic rules that are designed to make it difficult for imports to enter a country * These polices hurt consumers by denying
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the past decades‚ as a result of globalization especially in the business world‚ operating as a multinational company has become as an opportunity for the businesses to grow and develop faster. As Iverson pointed out‚ the significant benefit that organizations can have from being multinational is to take advantage of an expanding talent pool of workers (Iverson‚ 2000: p.31) Dubai can be a good example to prove that multinational workforce is a growing opportunity‚ according to Dubai government
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BACKGROUND OF THE STUDY . Introduction International Trade is increasingly becoming a fast – paced environment as it has given birth to a new economy through a technological revolution. New technologies are reshaping and impacting international trade‚ one of these is the Internet. The Internet is becoming a key platform for commerce that is increasingly happening between buyers and sellers located in different countries‚ thereby driving international trade. Additionally‚ as the Internet enables
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