Explain the role of private multinational corporations (MNCs) in foreign direct investment in developing countries. In your answer: • Describe what a multinational corporation is, with specific reference to their most common characteristics.

Explain the role of private multinational corporations (MNCs) in foreign direct investment in developing countries. In your answer: • Describe what a multinational corporation is, with specific reference to their most common characteristics.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter19: Financing International Trade

Section: Chapter Questions

Problem 7QA

See similar textbooks

Related questions

Q: Use Dunning’s four foreign direct investment (FDI) motives to make plausible arguments about FDI…

A: Foreign direct investment (FDI) is a special case of international investment in which an investor…

Q: discuss any four factors that foreign direct investment (FDI) consider when evaluating the political…

A: Foreign direct investment (FDI) : A foreign direct investment (FDI) can be described as a financial…

Q: What is globalization? What modes of international business are used by firms that want to…

A: Note: As per our guidelines, we can only answer one question at once. Please post other questions…

Q: Describe the market for foreign investment.

A: Foreign investment is when a domestic investor decides to purchase ownership of an asset in a…

Q: What determines a country’s net international investment position

A: The Net International Investment Position is basically the quantity after casting off the outside…

Q: Which of the following statements best differentiates multinational firms from domestic firms?…

A: The business usually operates in the country in which it is registered but when the business…

Q: 1. What are the benefits to China from adopting IFRS? 2. How do you think China should proceed with…

A: IFRS:-These are the International Financial Reporting Standards which followed by the companies,…

Q: Why an INTERNATIONAL BUSINESS AND TRADE ORGANISATION is crucial in different countries.

A: International Business An international business refers to the carrying out of business activities…

Q: What Financial Innovations have been created here by the Philippines? How did this affect the…

A: The process of developing new financial goods, services, or procedures is known as financial…

Q: explain clearly what a foreign exchange market is, it's importance and effects on the business world…

A: Foreign exchange market, organization that exchanging one nation's currency for another. Since the…

Q: Why do firmsexpand into other countries?

A: Business expansion: Business expansion involves introduction of novel stores in diverse physical…

Q: What is a multinational corporation? Why do firmsexpand into other countries?

A: A multinational corporation (MNC) is an organization which is having business units and assets in at…

Q: countries

A: International trade refers to the trade which is carried on across border with another country.…

Q: Direct foreign investment into the United States represents a ____. capital outflow…

A: Cashflow means movement of cash. This movement can be positive or negative. Positive movement means…

Q: All countries across the globe have joined the race to attract foreign direct investment. Examine…

A: Merits of foreign direct investment to specific sectorial communities in Australia as a Host Nation…

Q: countries across the globe have joined the race to attract foreign direct investment. examine the…

A: Foreign Direct investment is the flow of capital across countries. FDI is the direct investment of…

Q: Which of the following would contribute to a positive trade balance for a country? a. Having…

A: Introduction: Usually, a country’s trade balance is nothing but the difference between the amounts…

Q: Please explain the roles with examples of corporate governance in mitigate risks when analysing…

A: Risk refers to the probability of occurrence of any happening. In financial terms, it is a condition…

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: The conceptual formula used:

Q: Expound on the arguments in favour and against financial innovation. Provide examples of financial…

A: The question is based on the concept of financial innovation in link to financial system.

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: Relative interest rate constitute as one of the major factors in determining the exchange rates. For…

Q: Question Which of the following would contribute to a positive trade balance for a country? Answer…

A: The balance of payment is referred to as the sum of a country’s total imports and exports of goods.…

Q: Explain the relative merits of fixed and floating exchange rate regimes. From the perspective of an…

A: An exchange rate regime seems to be the method through which a nation's or currency union's monetary…

Q: Which one of these represents the most basic level of international participation by a business…

A: Any economic activity that crosses national borders is referred to as international business.

Q: Identify the top three countries and industrial sectors where the PRC has focused their investments…

A: China's Belt and Road Initiative (BRI) is something that India has consistently opposed due to the…

Q: Which of the following factors are likely to decrease the weighted average cost of capital for a…

A: Weighted average cost of capital is the required rate of return which investors would expect from…

Q: Which of the following statements best differentiates multinational firms from domestic firms? a.…

A: A multinational corporation is a company that operates in its home country, as well as in other…

Q: Describe direct foreign investment process?

A: Step 1 A foreign direct investment (FDI) is a financial investment made by a company or individual…

Q: ue to globalization and liberalization, many global corporates or multi- national companies wish to…

A: Hedge is process and technique to reduce financial risk, exchange rate risk define as risk due to…

Q: Why Liberal and business-friendly economy and Strategic business location in the Philippines is an…

A: The key points analyzed by investors while investing in foreign nation are government policies with…

Q: Evaluate a home country’s multinational corporations as a tool for international diversification.

A: Multinational which originated in home country that means they have stock listed at home and they…

Q: The main function of the IMF is: Act as a private-sector lending arm of the World Bank…

A: Financial markets are wide marketspaces that provide the medium of trading financial assets,…

Q: Where are the EU regulations successful in ensuring financial statement comparability between…

A: Financial statement comparability is an important feature or characteristic of financial statements.…

Q: Why did European countries need to start investing in industries located in other countries?

A: Investment means engaging your funds to generate profit or income in for coming time. Investment can…

Q: Which of the following would contribute to a positive trade balance for a country? Having tourists…

A: Trade balance is the difference between the import and export of goods and services. Positive trade…

Q: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and…

Question

Explain the role of private multinational corporations (MNCs) in foreign direct investment in
developing countries. In your answer:
• Describe what a multinational corporation is, with specific reference to their most common
characteristics.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Explain the role of private multinational corporations (MNCs) in foreign direct investment indeveloping countries. In your answer:• Discuss two of the problems that MNCs may create in the developing countries in whichthey operate.
Explain the role of private multinational corporations (MNCs) in foreign direct investment indeveloping countries. In your answer:• Discuss two benefits that MNCs can have for developing countries.
Evaluate a home country’s multinational corporations as a tool for international diversification.
a. According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets. b. Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business? c.
Can organizations survive on a specific economic view as they become involved in international business?
QUESTION B Which of the following is NOT a factor direct investors look at when judging whether they will be able to operate in a foreign country? CA Trade policy and privatization policy. OB CC The functioning and efficiency of local markets. The quality of domestic accountability systems. Standards of treatment of foreign affiliates. OD.
How does Haier’s internationalization strategy differ from the pattern of international development typical of Western enterprises?
Do you agree with the following claim? “U.S. companies with global operations can give you international diversification.” Think about both business risk and foreign exchange risk.
ASSIGNMENT Explain briefly how these factors can influence the adoption of IFRS by a country. Extent of economic development Nature of domestic business ownership and financing systems Colonial inheritance Cultural differences Legal systems Tax policies or laws Sources of funding Huge cost of developing own standards
What is a multinational corporation? Why do firmsexpand into other countries?
Use Dunning’s four foreign direct investment (FDI) motives to make plausible arguments about FDI motives of the firm. Support your answer with specific examples for each motive.
What are the cultural difference factors that affect international financial management?