Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 27, Problem 6Q
Summary Introduction
To determine: The reason why do country U shape manufacturing plants in abroad when they could build them at home.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Why do U.S. corporations build manufacturing plants abroad when they can build them at home?
Why do U.S. corporations build manufacturing plants abroad when theycould build them at home?
Why do US corporations build manufacturing plants abroad when they could build them at US soils?
Chapter 27 Solutions
Intermediate Financial Management (MindTap Course List)
Ch. 27 - Define each of the following terms: a....Ch. 27 - Prob. 2QCh. 27 - Prob. 3QCh. 27 - Prob. 4QCh. 27 - If the United States imports more goods from...Ch. 27 - Prob. 6QCh. 27 - Should firms require higher rates of return on...Ch. 27 - Prob. 8QCh. 27 - Prob. 9QCh. 27 - Prob. 10Q
Ch. 27 - Prob. 1PCh. 27 - The nominal yield on 6-month T-bills is 7%, while...Ch. 27 - Prob. 3PCh. 27 - If euros sell for 1.50 (U.S.) per euro, what...Ch. 27 - Suppose that the exchange rate is 0.60 dollars per...Ch. 27 - Prob. 6PCh. 27 - Prob. 7PCh. 27 - Prob. 8PCh. 27 - Prob. 9PCh. 27 - Prob. 10PCh. 27 - Boisjoly Watch Imports has agreed to purchase...Ch. 27 - Prob. 12PCh. 27 - Prob. 13PCh. 27 - Prob. 14PCh. 27 - Prob. 1MCCh. 27 - Prob. 2MCCh. 27 - Prob. 3MCCh. 27 - Prob. 4MCCh. 27 - Prob. 5MCCh. 27 - Prob. 6MCCh. 27 - Prob. 7MCCh. 27 - Prob. 8MCCh. 27 - Prob. 9MCCh. 27 - Prob. 10MCCh. 27 - Prob. 11MCCh. 27 - Prob. 13MC
Knowledge Booster
Similar questions
- 17. Companies are involved in exporting their product to different parts of the world then setting up a producing facility abroad. Explain what are the advantages and limitation of such strategy.arrow_forwardWhy did European countries need to start investing in industries located in other countries?arrow_forwardSuppose a U.S. firm builds a factory in China, staffs it with Chinese workers, uses materials supplied by Chinese companies, and finances the entire operation with a loan from a Chinese bank located in the same town as the factory. This firm is most likely trying to greatly reduce, or eliminate, which one of the following? Interest rate disparities Short-run exposure to exchange rate risk Long-run exposure to exchange rate risk Political risk associated with the foreign operations Translation exposure to exchange rate riskarrow_forward
- Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better economic and political environment (in the U.S.) B.Less expensive labor C.Tax incentives D. To achieve international diversificationarrow_forwardDo you think that a U.S. firm can experience political risk problems in its overseas projects because of the U.S. government?arrow_forward. What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method. 1. What is the difference between a monochronic and a polychronic culture? How do such cultural differences affect business practices for international firms? 2. What is gross national income? How is it calculated? Illustrate your answer with a specific example. 1. What are the disadvantages of import restrictions in regard to creating domestic employment opportunities? 2. What is value chain configuration? Briefly list and discuss the factors that influence value chain configuration. 1. What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions? 2. Explain how franchising agreements differ from licensing agreements. 1. Compare push and pull promotional strategies in the context of international business.…arrow_forward
- Which of the following best represents the primary economic and financial benefit to the U.S. from NAFTA? It led to increased tariffs on U.S. exports to Canada and Mexico. U.S. consumers had access to a wider variety of products. It resulted in the relocation of major U.S. corporations to Europe. The U.S. benefited from low-price manufacturing, low-priced labor, and reduced shipping and logistics costs.arrow_forwardWhich of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.arrow_forwardThe U.S. government has at times offered temporaryfinancial support to struggling companies that were deemedsignificant to the national economy. Looking at GE’s portfolioof businesses, should the government consider helping GE?Why or why not?arrow_forward
- The manager of a microchip (chip for short) manufacturing firm can choose from various production technologies and must determine whether or not to (a) move part of their production to a foreign plant, and (b) use the same technology in their foreign plant that they use in their domestic plant. Chip manufacturers can produce using either sophisticated equipment and relatively few workers (prevalent choice in the US) or many workers and less complex equipment (prevalent choice abroad). U.S. chip firms have been moving much of their production abroad for many years. Worldwide sales of chips made in the U.S. dropped from 66% in 1976 to 34% in 1998, and to 17% in 2011, then rose slightly to 21% in early 2015. U.S. chip firms moved their production abroad because of lower taxes, lower labor costs, and capital grants provided by foreign governments. These grants reduce the cost of operating a foreign facility by as much as 25%, compared to the costs of running a U.S. plant.…arrow_forwardWhich of the following statements is true about expropriation? Multiple Choice Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms. Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals. Expropriation of foreign enterprises by developing countries were rare in the old days Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.arrow_forwardGiven that Thai roller blade manufacturers located in Thailand have begun targeting the U.S. roller blade market, how do you think Blades’ U.S. sales were affected by the depreciation of the Thai baht? How do you think its exports to Thailand and its imports from Thailand and Japan were affected by the depreciation?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning