When considering a $500 American made lawnmower which is $100 more than the same (assume it is identical in features, basic performance, and design) foreign made mower. If suspected that the price difference, among other things, is due to domestic regulations that drive up the price of the mower. Which do you purchase? What are some of the issues that you consider prior to making your choice?
Do you think that the responsibilities placed on organizations by the United Nations Global compact should be assigned to local governments instead? Justify the response by outlining the appropriate legal and ethical considerations.© BrainMass Inc. brainmass.com October 25, 2018, 8:16 am ad1c9bdddf
The consumer is always in charge of the market. If you, as the buyer of the lawnmower, has a limited economy, and if all the features, advantages and benefits of the lawnmowers are the same, then you do not purchase the American lawnmower, but instead purchase the one that is most consistent with your budget. Domestic regulations are external environment forces that are out of ...
The purchase options for domestic versus foreign markets.
Business questions: general decision rule for NPV, use of inflation when evaluating firms, NPV vs real options and more...
Answer the below questions with at least five sentences each, >>>thoroughly and in your own words<<<
? Present the general decision rule for NPV. If a project has NPV = 0, should a manager accept the project?
? Define purchasing power parity. What is the importance of purchasing power parity to an analyst attempting to establish value for a company located in an emerging market.
? Why might inflation pose more problems in evaluating foreign firms than in evaluating a domestic business?
? Discuss some examples of political risks facing firms that are investing in other parts of the world.
? Why might there be an advantage in being a minority investor in an emerging market as contrasted to majority ownership?
? Why might the cost of capital be higher in emerging markets than in domestic ones?
? How can you use financial futures markets to hedge such risks as foreign exchange risk?
? Discuss the difference between NPV (net present value) and real options.