Discuss the four (4) disadvantages of foreign direct investment (FDI) to a host country. List the four (4) advantages why firms prefer Mergers and Acquisitions over Greenfield investments.
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- List one (1) advantage and one (1) disadvantage of using the NPV method in evaluating business investmentsIn general, an MNC's size, its access to international capital markets, and international diversification are favorable to an MNC's cost of capital. Group of answer choices True Falsevii. List two (2) disadvantages of using the NPV method in evaluating business investments.
- vii. List two (2) disadvantages of using the NPV method in evaluating business investments and explain them.Which of the following is NOT a proactive financial strategy related to the OLI paradigm in explaining FDI? strategies to gain lower global cost of capital strategies to reduce global taxation O strategies to reduce operating and transaction exposure All of the above are proactive strategies.True or False One of the factors responsible for globalization of financial markets and institutions is deregulation.
- Question 4 a. Explain why payback is not an appropriate investment criterion. b. Explain the concepts of competitive advantage and economic rent. c. Explain why the assumption of efficient markets is essential to corporate finance. Please answer all 3 partsWhich of the following identifies specialization as a reason for international business? A. Agency theory B. Theory of comparative advantage C. Efficient market hypothesis D. Imperfect markets theoryQuestion A18 Which of the following is not an advantage of the NPV investment appraisal technique when compared with the ARR investment appraisal technique? A It shows the increase in shareholder wealth B It considers the time value of money C It is more complicated to calculate and understand D It allows risk to be factored in by adjusting the cost of capital
- Question #1 – What is the ‘expectations gap’? Is there even anything the accounting profession can do to close this ‘Expectations Gap’? Question #2 – To converge or not to converge, that is the question. The adoption of IFRS by U.S. companies would it easier to compare U.S. and foreign companies, as well as for U.S. companies to raise capital in foreign markets.Which of the following is not a determinant of investment? a) The efficiency of capital equipment b) The level of consumer demand c) Interest rates d) The willingness of investors to buy new share issuesQ1) Economies of scale * A) in the financial markets does not explain why financial intermediaries developed and have become such an important part of our financial structure B) can be used to an advantage by reducing transaction cost. C) both A and B of the above D) neither A nor B of the above. Q2. Adverse selection [can select more than 1 answer] * A) is a problem created by asymmetrical information before the transaction. B) can be solved by eliminating asymmetrical information. C) helps explain why banks prefer to make loans secured by collateral. D) helps explain why borrowers are willing to offer collateral to secure their promises to repay loans. Q3. Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders find it costly to monitor managers; thus, stockholders are reluctant to purchase equities. * A) principals; agents B) principals; principals C)…