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Please answer the following questions 9. Which of the following is not a reason for U.S. firms operating in foreign markets? Less expensive labor Better
Please answer the following questions
9. Which of the following is not a reason for U.S. firms operating in foreign markets? Less expensive labor Better economic and political environment (in the U.S.) Tax incentives To achieve international diversification 12. Which of the following is NOT an example of a factor that can significantly influence exchange rates? The cost to purchase a loaf of bread in the U.S. has increased by $.50 while the cost has remained the same in London. The cost of capital has increased by 2% in the U.S. and has decreased by 2% in Germany. Interest rates on short-term investments in the U.S. have decreased to 4% while interest rates in Japan are at 8%. The U.S. has begun to export a higher level of goods to China than the prior year. 13. If a forward discount is prevalent in U.S. dollars to Swiss francs, the forward rate is lower than the spot rate. the forward rate is higher than the spot rate. markets will expect the Swiss Franc to appreciate relative to the dollar. the forward rate is lower than the spot rate and markets expect the Swiss franc to appreciate relative to the dollar. 17. What has motivated American firms to move their operations to foreign countries? Trade barriers, lower production costs, access to skilled workers, and U.S. tax deferral Trade barriers, lower production costs, access to natural resources, and manufacturing Import tariffs, foreign unions, foreign technology, and expropriation Lower production costs, U.S. tax deferral, access to natural resources, manufacturing, and expropriation 25. Which of the following statements about the International Finance Corporation is false? The decision to assist a venture depends on both the profitability of the project and the potential benefit to the host country's economy. The IFC assumes no managerial responsibility and exercises no voting rights. The IFC may either buy equity shares or provide long-term loans. All of these options are trueStep by Step Solution
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