Question
iv) State the Theory of Comparative Advantage and show how it explains firms motivation to expand internationally. v) Differentiate between licensing and franchising as two
iv) State the Theory of Comparative Advantage and show how it explains firms motivation to expand internationally. v) Differentiate between licensing and franchising as two methods of international business. Give one example each of licensing and franchise cases that you find in Ghana. vi) Give the three main dealers in the foreign exchange market briefly describing their activities in the market. vii) Describe the two ways by which futures contracts may be liquidated. viii) A Ghanaian multinational company has total assets valued at GHS200 million with debt amounting to GHS40 million. The cost of debt before tax of this multinational is 10% whilst its cost of financing with equity is 16%. If the MNC has corporate tax rate of 34%, find the firms weighted average cost of capital.
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