please I need a solution by 8pm tonight. it's also the fourth time I am reposting the same question. I have decided to use my phone to repost hoping the picture quality would be better. "Research a current MNE in regards to a multinational capital budgeting project, then discuss on of the real option decisions (on page 502 of your text) pertaining to the specific project" attached is page 502
502 CHAPTER 17 Foreign Direct Investment and Political Risk GLOBAL FINANCE IN PRACTICE 17.2 Drugs, Public Policy, and the Death Penalty Foreign direct investment can be a very tricky thing. Just risk that product n it wes Hospira concluded that it could not afford the r ask Hospira, a Hospira, of Lake Forest, Ilinois (U.S], stopped manufacturing so dverted, and a US.-based pharmaceutical manufacturer urer, Italan authorities wouid hold it liable for the therefore decided to exit the market with dsmay by the medical indus of Pentothal (sodum thiopental in North Caroina in the United The neNS States n mid 2009. It intended to shit all production to Italy try. Pentothal, at one time a widely used arnesthelic, is today a variety of special cases. The drug is preferred But Hospira quickly found that the Italian govermment only used i requred assurance that aty product produced in Italy woud in specific cases not be used in capital punishment procedures in the United to drop saverely, including the care of the elderly, patients States. Hospira, however, after extensive discussions with its with heart disease, or expectng mothers reauiing emenging wholssalers and distributors could not be certain that product, C-sections in which the possiblity of low blood pressure is once entenng into the sales and distibution system in the threatening. Second-best U.S., could not be diverted to departments of corrections for good enough. us in capital punishement. because it does not cause blood pressure solutions would now have to be Global-Specific Risk Global-specific risks faced by MNEs have come to the forefront in recent years. Exhibit 176 summarizes some of these risks, and strategies that can be used to manage them. The most visible recent risk was, of course, the attack by terrorists on the twin towers of the World Trade Center in New York on September 11,2001. Many MNEs had major operations in the World Trade Center and suffered heavy casualties among their employees. In addition to terrorism other global-specific risks include the antiglobalization movement, environmental concerns poverty in emerging markets, and cyber attacks on computer information systems, B ilaaw Management Strategies for Global-Specific Risks Terrorism and War Concerns Support government ettorts to fight terrorism and war Support gavemment etforts to reduce trade barriers Show sensitvity to environmental concem Support govemment enorts to maintain a level playing field lar polution controls * Crisis planning Recognize that MNEs are the targets Cross-border supply chain integration Poverty Cyber Attacks Provide stable, relatively well-paying jots Establish the strictest of oocupational safety standards No effective strategy except Internet security efforts Support gavement antl-cyber attack efforts MINE movement toward multiple primary objectives Proftability, Sustainable Development, Corporate Social Responsibility
