Describe some of the most important economic factors a U.S. business should consider before setting up operations overseas
What will be an ideal response?
A company considering doing business overseas must be familiar with the laws of the countries in which they plan to operate. Laws concerning the import and export of goods vary greatly from one country to another. Things can get particularly complicated if a product needs to be shipped to one country for assembly, then shipped to another for packaging, and then shipped to yet another country for distribution. Often, several countries are involved in the manufacture of one product, in which case the laws and regulations of all of those countries must be adhered to. It might be necessary for a U.S. company to work with the governments of foreign countries if there are strict importing restrictions or a multitude of taxes. Safety regulations, quality control, copyrights, and patent rights are some of the laws that multinational corporations must adhere to.
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What type of company would benefit most from using a product line sales force organization?
What will be an ideal response?
Which of the following statements is true of common law?
A) Judgments in common law generally take the form of a restraining order or an injunction. B) It is based on the legal system that originated in the courts of medieval Spain. C) Cases in common law are decided on the basis of precedents. D) It is primarily based on statutes enacted by the legislature.
A security issued in the United States that represents shares of a foreign stock and allows that stock to be traded in the United States is called a(n):
A) American Depository Receipt. B) Yankee bond. C) Yankee stock. D) Eurostock. E) foreign obligation trust certificate.
The interest rate on a 1-year Canadian security is 7.8%. The current exchange rate is C$ = US $0.79. The 1-year forward rate is C$ = US $0.77. The return (denominated in U.S. $) that a U.S. investor can earn by investing in the Canadian security is
A. 3.59%. B. 4.00%. C. 5.07%. D. 8.46%. E. None of the options