Should tax-related factors be considered in evaluating a foreign target? yes, di
ID: 2640673 • Letter: S
Question
Should tax-related factors be considered in evaluating a foreign target?
yes, different tax rates may increase after-tax earnings
no, corporate tax rates in the home country and the foreign country are the same
no, foreign taxes can be deducted from home country taxes
yes, corporate tax rates in the home country are always higher
none of the above
Counterpurchase:
is a form of barter
involves two separate transactions
always involves governments and MNCs
is not a form of countertrade
none of the above
MNCs sometimes measure country risk by assigning weights to factors. Which of the following is correct:
weights should be equally allocated among factors
factors will be identical for all MNCs conducting business in the same country
Factors for political and financial risk will be equally weighed in the final analysis
weights should be assigned to factors for political and financial risk according to their perceived importance.
none of the above
The Export-Import Bank of the U.S. offers various programs, including:
medium-term guarantee program
bank insurance programs for exporters
export credit insurance program for exporters
working capital guarantee program
all of the above
U.S. MNC is considering investing in Portuguese securities. The exchange rate is
Explanation / Answer
1. yes, corporate tax rates in the home country are always higher
2. Counter purchase is a form of Barter
3. weights should be assigned to factors for political and financial risk according to their perceived importance
4. all of the above
5. higher, because the euro will convert to fewer dollars
6. operating in both countries
7. The importer pays the exporter when the goods are sold