Question

which of the following are risks for multinational corporations but nor risks for domestic corporations? a....

which of the following are risks for multinational corporations but nor risks for domestic corporations?

a. government red tape and corruption

b. changes in government rules and regulations

c. capital controls

d. changes in tax laws

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Correct answer is option C: Capital control

Capital control are limit or prohibition imposed by the government to control the inflow or outflow of the cash.

therefore MNCs will be most impacted by these but no impact for domestic corporations.

Add a comment
Know the answer?
Add Answer to:
which of the following are risks for multinational corporations but nor risks for domestic corporations? a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 9. Differences between domestic and multinational corporations A collection of business firms, usually with a financial...

    9. Differences between domestic and multinational corporations A collection of business firms, usually with a financial institution at the lead, designed to provide the integrated production and sale of the organization’s products is called (An industrial group, an integrated corporation, a pyramid, or a multinational corporation)? (Pick one) Based on your understanding of the differences between U.S. and foreign businesses, which of the following statements is correct? Check all that apply. -The sovereignty of the different countries in which a...

  • CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across...

    CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. A: Which of the following best describes the reason RTE Telecom Inc. has decided...

  • Which of the following statements is CORRECT? a. Under current laws and regulations, corporations must use...

    Which of the following statements is CORRECT? a. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer. b. Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV. c. Since depreciation is not a cash expense, it has no effect on cash flows and thus no...

  • The basic principles of capital budgeting are valid for both domestic and multinational capital budgeting analysis....

    The basic principles of capital budgeting are valid for both domestic and multinational capital budgeting analysis. However, it is important to recognize the unique risks that multinational firms face when they perform capital budgeting analysis in a foreign market. For instance, a U.S.-based multinational firm might conduct business in Brazil, but any profits made must be repatriated, or returned, to the parent company and converted to U.S. dollars. There are significant risks inherent in these rather simple operations. In the...

  • Which of the following risks can have an impact on your supply chain? a. Regulations b....

    Which of the following risks can have an impact on your supply chain? a. Regulations b. Port congestion c. Economic instability d. Changes in economic conditions e. All of these f. Only A & C In which step of the risk management process do you develop a heat map? a. Risk consequence b. Risk identification c. Risk mitigation d. Disruption assessment e. Risk monitoring

  • Thanks for your HELP!!! 43. Which of the following corporations is entitled to join in a...

    Thanks for your HELP!!! 43. Which of the following corporations is entitled to join in a consolidated tax return without making a special election? A) corporations exempt from tax under Sec. 501 B) real estate investment trusts C) foreign corporations D) closely held corporations 45. Which of the following events is an intercompany transaction? A) a capital contribution B) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group C) dividend payment received from...

  • 12. Multinational Co. (MNC) generated $1,000 million in domestic earnings before interest, taxes, and amortization (EBITA)....

    12. Multinational Co. (MNC) generated $1,000 million in domestic earnings before interest, taxes, and amortization (EBITA). MNC amortizes intangible assets at $200 million per year and takes a $300 million interest expense. MNC's statutory (domestic) tax rate is 34 percent on earnings before taxes, but only 24 percent on foreign operations. MNC had $100 million of pretax foreign income and generates $20 million in ongoing research and development (R&D) tax credits. What is its effective tax rate on pretax profits?...

  • Which of the following statements is CORRECT? a. Relative to sole proprietorships, corporations generally face fewer...

    Which of the following statements is CORRECT? a. Relative to sole proprietorships, corporations generally face fewer regulations, and they also find it easier to raise capital. Stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. There is no good reason to expect a firm's stockholders and bondholders to react differently to the types of assets in which it C. invests. Bondholders should...

  • 40. Which of the following corporations is an includible corporation for purposes of filing a consolidated...

    40. Which of the following corporations is an includible corporation for purposes of filing a consolidated tax return? A) insurance companies                                       B) S corporations C) car manufacturing corporation D) foreign corporations

  • Market segmentation and asymmetric information would help explain, which of the following: Select one: a. foreign...

    Market segmentation and asymmetric information would help explain, which of the following: Select one: a. foreign investors do not have capital to invest b. international investors lack skills to do research c. domestic investors lack skills to do research d. foreign investors lack information about the local markets and firms A Multinational enterprise can ________ its ________ by acquiring access to markets which are less illiquid as well as less segmented than its own. Select one: a. decrease; Marginal Cost...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT