please go through these two presentations and post at least one question, remarks and comments for each.

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What Factors to Consider in MNC Capital Budgeting? Parent vs. Subsidiary Perspective Touro College Graduate School of Business International Financial Management - Fall 2015 Esther Elkouss MNCs capital budgeting It is used to evaluate international projects. Costs vs. benefits to determine if a project is feasible. Subsidiary vs. parent perspective Normally based on the parent's perspective. The difference: net after-tax cash inflows. Main factors Tax differentials: the rate the parent's government taxes the subsidiary. Restrictions on remitted earnings: host governments can put restrictions regarding the earnings. Exchange rate movements: other factor that influences is the exchange rate. Method Literature review: Systematic search of all publications regarding MNCs capital budgeting to find out: oThe main factors they take into account oThe differences between the subsidiary and the parent perspective. Results These are the main factors to consider: 1. Exchange rate fluctuations: forecast exchange rates. 2. Inflation: variations from year to year. 3. Financing arrangement: when foreign projects are financed by the subsidiary are considered cash outflows. 4. Blocked funds: some countries have restrictions regarding the earnings. Results 5. Uncertain salvage value: The MNC will compute the breakeven salvage value. 6. Impact of project on prevailing cash flows: it can compete with current business for the same clients. 7. Host government incentives: If a country is providing any type of financial incentive. 8. Real options: Some projects contain real options for additional business opportunities. Conclusions 8 factors to take into account when deciding if the capital budgeting for an international project should be conducted from the subsidiary or the parent's perspective. Foreign Direct Investment in the United Kingdom ADVANTAGES AND DISADVANTAGES BY: LISA DUNCAN INSTITUTION: TOURO GRADUATE SCHOOL OF BUSINESS INTERNATIONAL FINANCE Foreign Direct Investment According to Ball (2013) \"foreign direct investment is the action of investors participating in the management of a firm with the intention of receiving a return on their money.\".It is usually done by setting up subsidiaries. This presentation analyses the advantages and disadvantages of FDI within the United Kingdom itself. Introductory Questions Is there more of an advantage or disadvantage where FDI in the UK is concerned? Is the volume and level of FDI growing, has it slowed or has it stalled? Who really benefits? Is FDI only beneficial to an extent? Advantages (Results) FDI has created long lasting jobs within the United Kingdom. Exhibit one- Sourced from: United Kingdom Trade and Investment Report 2014-2015 Advantages The influx of FDI also contributes to economic growth. This graph shows the increase of FDI projects from 2010 to 2014. Exhibit two- Sourced from: United Kingdom Trade and Investment Report 2014-2015 Advantages FDI promotes healthy competition which is better for consumers Allows business to come together facilitating the transfer of the most recent technology and sharing of ideas. In the United Kingdom Trade and Investment Report 2014- 2015, the UK was stated as the number one destination for FDI. The Government uses this to their advantage, as they are working to make the UK the best place in the world for starting and growing a business. Disadvantages Companies that earn their revenue from consumers in the UK, sometimes use the money elsewhere. Eg. Reinvesting it in their home country. Competition from FDI sometimes forces smaller companies out of the market as they cannot afford to compete. Disadvantages Makes it harder for new local businesses to emerge. Loss of jobs - by those companies who were driven out of business. Conclusion FDI would seem to have a bit more of an advantage than a disadvantage in the UK. Up to July 2015, the level and volume of FDI is growing. Due to the competition, businesses, consumers and the economy mainly reap the benefits of FDI. It is only beneficial to an extent as it makes it difficult for new local businesses to emerge and forces existing businesses out of the market References Ball, D. (2013). International business: The challenge of global competition (13th ed.). New York: McGrawHill/Irwin. Bukari, P. (n.d.). Foreign Direct Investment: How Beneficial Is IT? Girma, S. (n.d.). Who Benefits from Foreign Direct Investment in the UK? Scottish Journal of Political Economy, 60(5). UKTI Inward Investment Report 2014 to 2015. (2015, June 17). Retrieved October 27, 2015