Why do firms become multinational enterprises? Identify and discuss four reasons‚ making sure to incorporate examples into your answer. Name Institutional Affiliation Why do firms become multinational enterprises? Identify and discuss four reasons‚ making sure to incorporate examples into your answer. Multinationals are corporations which operate in at least two countries but whose management is established in one specific country. They have their operations in at least one other country different
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Why do firms become multinational enterprises? There are multiple ways to define what is meant by the term “multinational enterprise” (MNE)‚ most of which can be reduced to a short list of criteria summarised effectively by Franklin Root (1994). He defined an MNE as a parent company that i) engages in foreign production through its affiliates located in more than one country; ii) exercises direct control over the policies of its affiliates; and iii) implements transnational business strategies in
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Dixon Ticonderoga Dixon Ticonderoga is one of the oldest public companies in the United States. The company’s flagship product is the ubiquitous No. 2 yellow pencil‚ introduced in 1913‚ which is known to almost anyone who went to school or took standardized tests in the United States. With annual revenue of a little more than $100 million‚ Dixon Ticonderoga is the second largest pencil manufacturer in the country. For most of its history‚ Dixon Ticonderoga has been a prosperous company‚ but
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Caso DIXON Finanzas Corportativas Integrantes • Hugo Rangel • Alvaro Rojas • Javier Rota • Javier Seminario 1. Estimate the cost of equity appropriate for the evaluation of the incremental cash flows associated with the Collinsville investment. Estimate the weighted average cost of capital appropriate for discounting the Collinsville plant’s incremental cash flows a) Usando los β de Burnswick y Southern‚ hallamos el βE desapalancado de Collinsville. Southern Chem. βA= βD(D/V)+βE(E/V)
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Bus M 401 Dixon Case Estimate of WACC for Collinsville Plant The WACC for Collinsville‚ according to our estimations‚ came up to about 16.22% (Exhibit I). We took the average of the unlevered betas of comparable companies‚ 0.91‚ and relevered it according to Dixon’s target capital structure. Dixon’s 5-year historical debt ratio was 27.5%‚ but this approach would not be reliable due to its steep downturn debt ratio from 51% in 1975 to 6% in 1979. Thus‚ we thought that the best estimate of the
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Case Two Analysis Dixon Corporation: The Collinsville Plant Paul Candland & Lynn Chang October 1‚2013 WACC Calculation In order to calculate WACC‚ we need to first start with the beta of equity. We are given the beta of equity of 1.06 of Dixon as a firm in Exhibit 7. However‚ the beta given is not an appropriate measure of the systematic risk of the Collinsville Plant‚ because Dixon produces many other chemical products other than Sodium Chlorate. Therefore‚ in order to accurately capture
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religion named The Gloryers‚ which means Jeane Dixon‚ will help us to survive when the Armageddon comes and brings the glory to all our practitioners. Background of The Gloryers Jeane Dixon who was a famous American astrologer of the 20th century has accurately predicted the futures (Dixon‚ & Noorbergen‚ 1971). She prophesied that the Armageddon will come within 100 years‚ and her prediction is based on what Jesus told her in her dreams. Jesus told Jeane Dixon that only kindness people could survive after
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Why do you think that the Chinese apparently have a cost advantage in the production of pencils? As we all know that China is a country with a large population of people. With a lot of investment and professional people in China‚ it has become a strong foreign competition in producing pencils. With the high technology of machines in China‚ it is said to have more cost advantages in costs‚ material and production or even labor costs. Apparently‚ China has a cost advantage in the production of pencil
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Dixon Ticonderoga 1. Why do you think that the Chinese apparently have a cost advantage in the production of pencils? a. Chinese apparently have a cost advantage due to the amount that they can sell pencils at. It may be due to the domestic competition‚ a rebate the Chinese offers for exports of pencils‚ and the lowering of duties that where imposed by the U.S. Department of Commerce. Also‚ the Chinese continued to find ways of lowering cost‚ increasing technology‚ and their know-how in making
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Dixon Ticonderoga Victim Of Globalization Case Discussion – No.1 Dixon Ticonderoga – Victim of Globalization 1. The reasons for cost advantage in Chinese pencil production: a. Cheap labor availability China is a country with high population and the labour is cheap compared to the US labour which results lowering of the cost. b. Availability of raw materials The raw material could be cheaper in China compared to the sources which US is being supplied for the pencil production
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