3. Kubota invests in Vietnam (B-advanced). Referring to the information provided in problem 2, evaluate the following:

a. How would a 30 percent ad valorem tariff on power train and chassis imposed by the Vietnam government impact Kubota’s decision?

b. How would an 8 percent annual rate of inflation in Vietnam but no devaluation of the VND against the ¥ impact Kubota’s decision?

c. How would a 30 percent corporate income tax imposed by Vietnam impact Kubota’s decision?

d. How would a 10 percent withholding tax on all cash remittances by Kubota-
Vietnam to its parent impact Kubota’s decision?

e. How would a composite scenario based on assumptions a through d change Kubota’s decision?