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WAVERS Inc. is a California based firm that specializes in the manufacturing of high- end surfboards. Consumers in the coastal African region  as well as Japan and the UK have recently discovered the joys of surfing. WAVERS has hired you as a consultant to provide advice regarding global expansion. They are debating whether to continue exporting to the UK or possibly licensing the technology to a London firm that has expressed some interest in manufacturing the product in the UK. Currently, Wavers return on investment from their domestic market is 35% with a net profit of $5 million from $20 million in sales.  Labor is roughly 50% of total expenses and 20% cheaper in the UK than the US. Costs other than labor in the UK are roughly on par with the US.  Discuss whether they should license or continue to export and the contingencies that need to be considered. If they license, what should the royalty rate be?  Provide any assumptions that you have made

Individual ActivityMarbles Inc. is a start- up Company manufacturing marbles andelastic bands. The Company imports its raw materials from France,but based on its business model expects that within the next 6 monthsit will be able to manufacture its own products. These will be soldlocally in Grenada, with further plans for export to the wider Caribbeanand Latin America. As such, a lot of Marketing and promotion will berequired to get the product off the ground to meet this business target.Also, due to this projected expansion, machinery will have to bepurchased to create the products.The Financial Controller decides that the first step in creating heraccounting system is to create a Chart of Accounts.Before creating the Chart, she is contemplating the accounts whichshe will need for her Chart of Accounts. She knows that Cash, Sales,Purchases and Staff Costs are some of the accounts that will beneeded. You are assisting her to build this tool and she requires yourhelp. Advise her on the…

Marbles Inc. is a start- up Company manufacturing marbles and elastic bands. The Company imports its raw materials from France, but based on its business model expects that within the next 6 months it will be able to manufacture its own products. These will be sold locally in Grenada, with further plans for export to the wider Caribbean and Latin America. As such, a lot of Marketing and promotion will be required to get the product off the ground to meet this business target. Also, due to this projected expansion, machinery will have to be purchased to create the products. The Financial Controller decides that the first step in creating her accounting system is to create a Chart of Accounts. Before creating the Chart, she is contemplating the accounts which she will need for her Chart of Accounts. She knows that Cash, Sales, Purchases and Staff Costs are some of the accounts that will be needed. You are assisting her to build this tool and she requires your help. Advise her on the…

citrus juice drinks with groves in Indian River County, Florida. Until now, the company has confined itsoperations and sales to the United States, but its CEO, George Gaynor, wants to expand into the PacificRim. The first step is to set up sales subsidiaries in Japan and Australia, then to set up a production plant in Japan, and finally to distribute the product throughout the Pacific Rim. The firm’s financial manager, Ruth Schmidt, is enthusiastic about the plan, but she worries about the implications of the foreign expansion on the firm’s financial management process. She has asked you, the firm’s most recently hired financial analyst, to develop a 1-hour tutorial package that explains the basics of multinational financial management. The tutorial will be presented at the next board of directors meeting. To get you started, Schmidt has given you the following list of questions:a. What is a multinational corporation? Why do firms expand into other countries?b. What are the five major…

Hi can you please help me verify my answers for this problem. For each blank please help. Thank you.

H-Robotic Incorporated (HRI), a world leader in the robotics industry, produces a line of industrial robots and peripheral equipment that performs many routine assembly-line tasks. However, increased competition, particularly from Japanese firms, has caused HRI's management to be concerned about the company's growth potential in the future. HRI's research and development department have been applying the industrial robot technology to develop a line of household robots. The household robot is designed to function as a maid, mainlyperforming such tasks as vacuuming floors and carpets. This effort has nowreached the stage where a decision on whether to go forward with production must be made. The engineering department has estimated that the firm would need a new manufacturing plant with the following construction schedule: The plant would require a 35-acre site, and HRI currently has an option to purchase a suitable tract of land for $2.5 million. The building construction would begin…

Finisterra, S.A. Finisterra, S.A., located in the state of Baja California, Mexico, manufactures frozen Mexican food which enjoys a large following in the U.S. states of California and Arizona to the north. In order to be closer to its U.S. market, Finisterra is considering moving some of its manufacturing operations to southern California. Operations in California would begin in year 1 for three years and have the following attributes: E The operations in California will pay 81% of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed up dividends from foreign countries, with a credit for host-country taxes already paid. The corporate income tax rate in U.S. is 28% (the tax rate in Mexico is lower than the rate in the U.S.), the current spot exchange rate is Ps10.00/$, and the exchange rates for the next three years will be Ps11.00/S, Ps12.00/S, and Ps13.00/S, respectively. Assume the after-tax dividends received by the parent in years…

Contemporary Interiors (CI) manufactureshigh-quality furniture in factories in North Carolina for sale to top American retailers. In 1995, CIpurchased a lumber operation in Indonesia, and shifted from using American hardwoods to Indonesian raminin its products. The ramin proved to be a cheaper alternative, and it was widely accepted by Americanconsumers. CI management credits the early adoption of Indonesian wood for its ability to keep its NorthCarolina factories open when so many competitors closed their doors. Recently, however, consumers havebecome increasingly concerned about the sustainability of tropical woods, including ramin. CI has seensales begin to fall, and the company was even singled out by an environmental group for boycott. It appearsthat a shift to more sustainable woods before year-end will be necessary, and more costly.In response to the looming increase in material costs, CEO Geoff Armstrong calls a meeting of upper management.The group generates the following…

BnB Caribbean Inc. (BnB) is a leading construction company founded in 2001 and is based in Jamaica.  The company has within recent years been experiencing increases in revenues from its construction related services such as design, build, expansion and remodeling, and emergency services.  It’s main line of business is from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few other Caribbean countries.  Since the growth of the tourism sector in the Caribbean, BnB Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar services around the Caribbean region.  Business overseas contributes to 40% of the company’s revenues, while the other 60% comes mainly from works done in the domestic market.     The COVID-19 pandemic has caused a slowdown in overall operations leading to prolonged delays in delivery of raw materials from abroad.  The CEO of the company is optimistic that…

BnB Caribbean Inc. (BnB) is a leading construction company founded in 2001 and is based in Jamaica. The company has within recent years been experiencing increases in revenues from its construction related services such as design, build, expansion and remodeling, and emergency services. It’s main line of business is from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few other Caribbean countries. Since the growth of the tourism sector in the Caribbean, BnB Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar services around the Caribbean region. Business overseas contributes to 40% of the company’s revenues, while the other 60% comes mainly from works done in the domestic market. The COVID-19 pandemic has caused a slowdown in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO of the company is optimistic that there will…

Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products - they manage relationships with the bicycle shops to enable them to better meet consumers' needs. The company's sales reps visit the shops several times per year, often for hours at a time. The owner of Wheels is considering expanding to the rest of the country and would like to have distribution through 450 bicycle shops. To do so, however, the company would have to hire more salespeople. Each salesperson earns $30,000 plus 3 percent commission on all sales annually. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 6 percent of sales. Each sales call lasts approximately 3 hours, and each sales rep has approximately 675 hours per year to devote to customers. Wheels needs 6 salespeople if it has 450 bicycle shop accounts that need to be called…