StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

FIN unit 5 IP - Essay Example

Comments (0) Cite this document
Summary
Running head: FOREIGN DOMESTIC INVESTMENT 8th November 2013 Vernon’s product life-cycle theory of FDI was developed by Raymond Vernon. According to the theory, a firm starts by exporting its products after which it emulates foreign direct investment…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
FIN unit 5 IP
Read TextPreview

Extract of sample "FIN unit 5 IP"

Download file to see previous pages By establishing production facilities in other countries especially where the cost of production is low, the firm starts to import its products back to home. Vernon’s product life-cycle theory was initially developed in US due to the fact that the most of new products were initiated in the US market. As more regions became developed, the theory was emulated by other countries such as China and Japan among other countries. One of the notable strengths of the Vernon’s product life-cycle theory is that it clearly explains the historical development of foreign domestic investment (Moffett et al, 2009). Nevertheless, based on the complexity in the production process globally, Vernon’s product life-cycle theory cannot neatly hold. For instance, as many countries initiate production systems, new products are being introduced at the same time in addition to establishment of production facilities in many countries simultaneously. Based on stiff competition that is been experienced in the current business atmosphere, many countries are focused at supporting their local companies by offering incentives such as tax subsidies and training of their work force. One of the major reasons as to why host countries, resist cross-border acquisitions is that they view them as foreign companies who are aimed at taking over their local firms without creating employment opportunities. On the other hand, host countries, view green field investments as economic drivers that are focused at establishing new production facilities that acts as major sources of employment for the local residents (Wang, 2005). Additionally, some host companies are viewed as competitors whose aim is to create products that are similar to those of the host companies. As a result, the local firms are faced with fewer sales leading to reduced amount of tax paid to the government thus resulting to slow development of the host countries. As local companies adopt foreign domestic investment, they are faced with various risks that range from currency risk to political risks. Based on the need to produce a budget that entails all the assets and liabilities that firms have at a certain date, it is imperative to incorporate the risks so as to provide fair position of the companies’ financial position. Political risks entail the complications that local and foreign businesses may face due to a political change. Beside macroeconomic factors, political risks can be caused by social policies as well as changes in investment, labour and changes in development among others. Political risks can be divided into macro political risks and macro political risks. While micro political risks are specifically related to a project, macro political risks affect all sectors of a country. During capital budgeting, firms should incorporate political risks in various ways. First, an organization can adjust the cost of capital upwards in order to indicate the impact of political risk. This is followed by discounting the expected cash flows at an increased rate. Secondly, a firm can deduct insurance premiums associated with political risks from the future cash flows. This is followed by using the normal cost of capital which is adopted by the domestic capital budgeting. The need for expansion in foreign countries has forced many firms to emulate various strategies in order to expand their tangible and intangible assets. Two notable ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“FIN unit 5 IP Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
FIN unit 5 IP Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/finance-accounting/1490238-fin-unit
(FIN Unit 5 IP Essay Example | Topics and Well Written Essays - 1000 Words)
FIN Unit 5 IP Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/finance-accounting/1490238-fin-unit.
“FIN Unit 5 IP Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/finance-accounting/1490238-fin-unit.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF FIN unit 5 IP

Fin 630 Unit 5 Indivudual Project

... and simultaneously internalizing externalities the assets have generated. Chinese firms use both forward and backward processes to expand into new markets and thus enhance the pull and push internationalization factors for domestic companies (Zhou, 2008). Moreover, Chinese firms also attempt to explain and predict a firm behavior and choices in an international setting over time. Question 5 It is important to include currency exchange risk into the capital budgeting foreign investment process by using the forward market and international transfer prices. The foreign exchange rate risk happens from undertaking worldwide business dominated in currencies save for the domestic currency because of high instability in foreign exchange rates...
3 Pages(750 words)Research Paper

BUSN300 Unit 5 IP

It has factories that spread over six continents dealing with the production of automobiles Toyota Business Environment Every organization, regardless of the business they are doing, is exposed to a lot of factors that has an effect on the performance of a company and also the strategies and decision making of an organization. It is therefore important for companies to be informed about these factors since they can have an influence on the plans and strategies of a company Challenges faced by Toyota Motor Corporation Toyota Motor Corporation being an international company faces a lot of legal and business challenges that have affected the strategies, plans and decisions of the organization and also the entire automobile industry....
4 Pages(1000 words)Research Paper

UNIT 5-IP

Good judgment comes from experience, and often experience comes from bad judgment. Interestingly enough Rita Mae Brown takes credit for this quotation, however Jim Horning (ND) claims the author is unknown. Barry LePatner (ND) claims it is his quotation. In laputan (December, 2003) it is stated that many have purported to attributions and that it goes as far back as Mark Twain.
Good judgment comes from experience. When having to make choices and finally having to decide, rather than tossing the coin, brainstorming is a good way of being able to make these decisions.
It would be superfluous to mention that brainstorming has been used by experts in different fields, such as: the military, education, business, and government, t...
2 Pages(500 words)Essay

Unit 5 IP introduction to law enforcement

...Ethical dilemmas in cooperation between local police and other law enforcement agencies of the Effective law enforcement needs cooperation among different agencies to effectively tackle crime. This paper discussed the factor of ethical dilemmas that could arise when such cooperative action takes place. This specific study involved the local police in a large city in the United States and other national and international law enforcement agencies in the country. It can be seen that several ethical dilemmas like ego clashes, racism, operational procedures and corruption do exist in this case. Solutions to reduce these dilemmas have been given in the paper which could help in better cooperation among different law enforcement agencies...
5 Pages(1250 words)Essay

IP 5

...Phase 5 Individual Project Part IV: Sales Tax Sales tax on the purchase of a vehicle is calculated on the net purchase price, which is the total purchase price minus the amount allowed by a dealer for a trade-in. For residents in Denver, Colorado purchasing a new vehicle, their tax rates are as follows: 1. Colorado State Tax: 2.90% 2. Regional Transportation District (RTD) tax: 1.20% 3. Denver City Tax: 3.62% Using the information above, answer the following: 1. What is the total sales tax to be paid in 2012 on the purchase of a 2012 passenger vehicle with a selling price of $17,000 and a $2,000 trade-in allowance? Total Sales Tax Rate = 2.90% + 1.20% + 3.62% = 7.72% Net Purchase Price = Total Purchase Price – Trade-in = $17,000 – $2,000...
3 Pages(750 words)Essay

Analysis Tools Unit 5 IP

... a need for discounted housing for college students who opted not to live on the college campuses, and provided an ample solution by the formation of the non-profit. “During the academic year Educational Housing Services rents 60 percent of its units directly to schools under contract (40 percent in the summer). The remainders of the beds are rented to students directly” (Dolnick, 2012). His idea proved he possessed entrepreunuerial merit; however, he and his staff could have landed a prison sentence for his variance. Scott’s salary of ‘$1.4 million in 2007 and $718,382 in 2010’ apparently was not profitable to him (Dolnick, 2012). Scott was charged with ‘siphoning millions of dollars from Educational Housing Services through a shell...
2 Pages(500 words)Research Paper

Analysis Tools Unit 5 IP

...StatCrunch Assignment 2 First save this file to your computer. Answer each of the following questions, then resave the file along with your answers and turn it in using the assignment link in Module 3, Activity 4. the first four problems are worth 10 points each. Problems 5 and 6 are worth 30 points each. 1. If the original sample is 48, 55, 43, 61, 39, which of the following would not be a possible bootstrap sample? Explain why it wouldn’t be. a) 48, 55, 43, 61, 39 b) 43, 39, 56, 43, 61 c) 55, 48, 55, 48, 61 d) 39, 39, 39, 39, 39 Answer A. Because the philosophy of bootstrap is to replace the original population by the empirical population. The population in A is the same as the original. 2. The following bootstrap output is for mileage...
2 Pages(500 words)Research Paper

SCIE UNIT 5 IP

...Oil and Pollution Act (OPA) of Affiliation Oil and Pollution Act (OPA) Oil and Pollution Act or OPA came became operational in August 1990 following an increased outcry by the public over the Exxon Valdez incident. OPA was passed as a tool to help improve the nation’s capability to avoid and further respond to oil spills. This is accomplished through establishment of provisions that work to broaden the federal government ability while t the same time offer financial support and any other resources required to respond to spills. OPA on the other hand established the national Oil Spill Liability Trust Fund that offers close to one million dollars every time there is a spill (US Environmental Protection Agency). The OPA law... and Pollution...
2 Pages(500 words)Research Paper

FIN Unit 3 DB SA

...DISCUSSION MODULE Template Part a) The premium of 20% has not been added. Adding the premium shall result in making the deal unfeasible.The deal has initially been shown as feasible. This shall lead to an adverse effect. Fair value premium above market is rather ambiguous. Part b) Another suggestion may have been incorporating foreign investment risks. Part c} The premium of 20% has not been added. Adding the premium shall result in making the deal unfeasible. The deal has initially been shown as feasible. This shall lead to an adverse effect. Fair value premium above market is rather ambiguous. Template 2 Part a) The premium of 20% has not been added. Adding the premium shall result in making the deal unfeasible. The deal has... MODULE...
1 Pages(250 words)Essay

Strategic Management Unit 5 IP

A business is as good as its planning, controlling and implementation. During this study different strategic discussions will be there which would help the company to keep its footsteps in the Tennessee market.
Strengths: - It is a very well known company throughout the USA. As it is very well known people can easily recall its name. Management of the company would not find any problem regarding their recognition of their products. Company makes good quality of musical instruments. Products are of very high quality. Customers are very stratified with the products made by company. Quality assurance is a real strength for the company. Price ranges of their products are also well within the reach of normal customers. Company is h...
6 Pages(1500 words)Assignment

Comparing Mobile IP, TCP/IP and IPv6

... sending data. Data, along with a header and a trailer, are called datagrams. Information such as destination address that is required to route the data is contained in the data header. The header may also contain other data information source address and security labels. Trailers are used to ensure that the data has not been modified in transit. This is typically done through a checksum value in the trailer. ii. IP also fragments and reassembles datagrams so that data links with different Maximum Unit Transmission (MTU) sizes in internetworks may be supported. IP, along with TCP, are the most crucial of the Internet Protocols and are therefore said to represent the heart of the Internet Protocols. The IP addressing scheme...
10 Pages(2500 words)Case Study

Multi Unit Company and MA Hospitality

... Levitt, T. (1972). Production-line approach to service. Harvard Business Review. September-October 1972 Ritchie, B. & Riley, M. (2004). The role of a multi-unit manager within the strategy and structure relationship; evidence from the unexpected. Hospitality Management. Vol. 23 pp. 145-161 Willocks, S., (1994), The Clinical Director in the NHS: Utilizing a Role-theory Perspective, Journal of Management in Medicine, Vol. 8 No. 5, 1994, pp. 68-76. Harvester website www.harvester.co.uk Appendix I Interview questions 1. Designation 2. Experience in the industry 3. Years of work at Harvester 4. Positions held at Harvester 5. Whether promoted from within the company 6. How many units under this multi-unit manager? 7. On what criteria...
15 Pages(3750 words)Essay

Communication Issues in the Emergency Unit

...Communication Issues in the Emergency Unit Introduction Nurses face various challenges in the clinical practice and environment. These challenges often add to the responsibilities they have to deal with on a daily basis in the hospital. One of the most stressful and demanding work units in the hospital is the emergency room. Emergency room nurses are one of the busiest nurses in the hospital. They are pressured to think fast on their feet and to be constantly aware and conscious of their actions. And same as other units in the hospital, they also encounter a variety of issues which often affect the outcome of their work. This paper shall discuss communication issues that nurses encounter in the emergency unit of hospitals...
12 Pages(3000 words)Research Paper

5 Questions re: The AmericanTradition in Literature by George and Barbara Perkins

... unfair and which didn’t provide equal opportunity before this time frame. The insight which Franklin gives in all his readings are associated with the ability to develop personally, as a society and politically because of the knowledge and innovations available. 5. Natty Bumppo as an American hero is one which describes the establishment of America and the challenges and adventures which come with it. Through James Cooper’s story, The Pioneers, there is a description of Natty’s actions as well as how this interlinks with the developing of America. Even though Natty isn’t one which is able to work with specific concepts, such as intellectual thoughts, it is the American establishment that makes Natty a hero. When describing...
10 Pages(2500 words)Assignment

Simulated Counseling Sessin - Topic: Fear of Commitment (Loving and Trusting) after Divorce/ Focus Group: 5 Divorced Men

...Fear of Commitment after Divorce from Adlerian Perspective Introduction Under various counseling perspectives, divorce is handled in a similar way as grief and loss counseling is conducted. Adlerian perspective is not among the best backgrounds to address grief and loss, but with a special mention of the specific life challenges facing the client, useful counseling insights are established to back the main perspectives. According to Hartshorne (2003), the most established psychological perspectives to handle grief and loss include psychoanalytic perspective, attachment perspective as well as psychosocial perspective. Psychoanalytic theory particularly devotes a grief work model that assesses the intricacies of the process involved...
7 Pages(1750 words)Coursework

Organizational Behavior Weekly Articles from wither Newspaper, Internet, TV (Starting Oct. 3-Dec. 5, *10 Weeks, 10 Articles)

.... Nov 20-27 How managers can resolve workplace conflicts effectively In the article, the author Mark Schnurman focuses on the conflicts that may arise in the workplace. The reason, why the article interested me is because, instead of focusing on the causes of conflicts, it mainly focuses on how it can be resolved by providing a list of effective tips. According to the author, when a conflict happens it could negatively impact employees’ morale and productivity and so it is the responsibility of the managers to solve it quickly. Although, disagreement is a healthy way to assess and resolve issues, only if it is managed aptly by focusing on the behaviors of employees, it can lead to positive end results. Nov 27-Dec 5 Abusive Boss May Harm...
7 Pages(1750 words)Coursework

With reference to Robbins et al. (Reading 5), discuss how situational leadership can help raise your organisation's performance

Situational leadership is one such concept outlining that there is no single best concept or style of leadership. The best leadership therefore is task related and therefore the most successful leadership is the one which can easily adapt its style to the level of maturity. Robbins et.al outline that the overall performance of the leader as well as the organization critically depends upon the nature of the relationships between the followers and the leaders. Under situational leadership, the overall organizational effectiveness as well as the performance largely depends upon what followers do and how they do it. The overall organizational performance under the situational leadership therefore largely depends upon the notion of th...
9 Pages(2250 words)Essay

Ted Talk: 5 Discussions

...TED TALK: 5 Discussions Due Christopher Emdin: Teach teachers how to create magic https www.ted.com/talks/christopher_emdin_teach_teachers_how_to_create_magic Some teachers inspire learners in regards to the material, encouraging them to pursue the topic with interest and energy. However, there are other teachers who lecture with no personality and drone on like he is a machine reading directly from a cold, clinical textbook. Christopher Emdin is concerned with the nature and format of how teaching is done in modern educational institutions. When someone decides to become a teacher they have to go to school and learn an immense number of, what he defines as, outdated education theories, as to how to relate, engage, and lead... TALK: 5...
7 Pages(1750 words)Assignment

Crime Strategies Unit

A’s office has always been that through fair and just administration enhancement of public safety can be achieved. Established on the philosophy that “A prosecutor’s office is to ensure justice and safety” It is from this that the Crime Strategies Unit (CSU) was created by D. A Vance in 2010 so as to target priority offenders and address crime issues by utilizing the collective resources of the D. A’s office, thus, developing and being able to implement strategies in an intelligence-driven prosecution (Manhattanda.org 2014).
The goal of the Crime Strategies Unit is to be able to foresee a crime before it happens and prevent it rather than after an arrest where D. A’s office prosecutes cases...
7 Pages(1750 words)Assignment

Exploring Parent Knowledge and Understanding of Healthy Eating of Childhood Ages 5-10 Years Old

Obesity in children is one of the biggest public health challenges in the 21st century. Contextually, in the UK there has been increasing concern with regard to childhood obesity that has led the last government to apply stricter nutrient standards with respect to foods supplied in schools (Voon, Mitchelle & Liberman 2014). “Obesity is increasing among children and adolescents, with 16.8% of boys and 15.2% of girls in the UK aged 2 to 15 years obese in 2008” (Canoy & Bundred 2011, p. 1). Obesity can cause cancer and heart diseases in children (PIHD, 2015). This study is, therefore, topical and relevant showing how unhealthy eating patterns have posed a great challenge to children’s health. “Young ch...
8 Pages(2000 words)Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic FIN unit 5 IP for FREE!

Contact Us