4 qns

Question 1

“International Capital Budgeting” Please respond to the following:

             Examine the conditions under which the capital expenditure of a foreign subsidiary might have a positive net present value (NPV) in total currency terms but be unprofitable from the parent firm’s perspective. Create a (very) brief scenario that illustrates the conditions.

             Analyze the adjusted present value (APV) methodology and make at least one recommendation for improvement. Explain your rationale.

question 1b

“Multinational Cash Management” Please respond to the following:

             Create 2 to 3 best practices that any multinational corporation could apply to multinational cash management.

             Discuss the pros and cons of a multinational corporation having a centralized cash manager handle all the investment and borrowing for all affiliates of the multinational corporation versus each affiliate having a local manager who performs the cash management activities of the affiliate.

question 2

             “International Trade Finance” Please respond to the following:

             Analyze the major elements of international trade to determine why there is more risk here than in domestic trade. Make at least one recommendation for mitigating the risk(s) you have identified.

             From the first e-Activity, discuss ways the U.S. could apply some lessons learned from other countries to assist private business in the conduct of international trade. Provide examples to support your response.

                question 2b

             “International Tax Environment and Transfer Pricing” Please respond to the following:

             Discuss how investors in international assets can leverage information about the international tax environment to maximize their investments. Provide examples to support your response.

             From the second e-Activity, determine how the corporation you researched should leverage transfer pricing and how import duties might influence transfer pricing policies. Provide specific examples to support your response.

e-Activities

             Use the Internet or the Strayer Online Library to research how countries other than the U.S. help support private business in the conduct of international trade. Be prepared to discuss.

             Use the Internet or the Strayer Online Library to research a U.S.-based corporation that would benefit from transfer pricing. Be prepared to discuss.

qns