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Grace [21]
3 years ago
11

Which of the following is a likely reason for choosing FDI instead of licensing?

Business
1 answer:
Romashka [77]3 years ago
8 0

Answer:

The correct option is B

Explanation:

FDI is an investment in the business through an investor from another country and control is with the foreign investor over the company purchased.

Licensing means all the contracts to which the third part has granted or licensed any right to its subsidiaries or company.

So, the reason for preferring FDI instead of license is sharing the intellectual know how with the foreign rival might be risky as this is a limitation in licensing.

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Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecti
Anika [276]

Answer:

With respect to the employment-at-will doctrine, this is "An exception based on public policy"

Explanation:

Under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination violates an explicit, well-established public policy of the state. For example, in most states, an employer can't terminate an employee for filing a workers' compensation claim after being injured on the job, or for refusing to engage in illegal activity at the request of an employer.

Public policy may be found in a state constitution, statute, administrative rule, or other state policy. The public-policy exception is the most commonly accepted exception, recognized in the vast majority of states.

4 0
3 years ago
1. A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in
NARA [144]

Answer:

The subsidiary reports cost of goods sold at A. $660,000.

Explanation:

Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:

Cost of goods sold = Opening inventory + Purchases - Closing inventory

The subsidiary calculates its cost of goods sold as follows.

Opening inventory           $120,000

Add: Purchases                $720,000

Less: Closing inventory    ($180,000)

Cost of goods sold           $660,000

Therefore, the correct option is A. $660,000.

6 0
3 years ago
You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.50 = €1.00 and the dolla
Verdich [7]

Answer:

The correct answer is (B) Buy euro at $1.50/€, buy £ at €1.25/£, sell £ at $2/£

Explanation:

The dollar- euro exchange rate is quoted as $1.50 = €1.00

the dollar-pound exchange rate is quoted at $2.00 = £1.00

To calculate the actual cross rate we use; S(euro divided by pounds) =  S(dollar/pounds) ÷ S(dollar/euro).

Using symbols to denote this, we have S(€/£) = S($/£) / S($/€)

S(€/£) = S(2/1) ÷ S(1.50/1)

= (2 / 1.5)

= €1.33.

Consequently, from this result we now know that the euro is undervalued with respect to pounds under the cross rate being offered by the bank. This implies that you should first buy the euro, convert to pounds, and eventually convert back to dollars, this would enable you make money as an investor.

3 0
3 years ago
Read 2 more answers
The multiplier for a futures contract on a stock market index is $50. The maturity of the contract is 1 year, the current level
jolli1 [7]

Answer:

The cash flow mark to market proceeds = $754.45

Explanation:

The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12

= 1800 * (1 + 0.50% - 0.20%)^12

The current index value after 12 months = 1865.88

The future index value after 12 months = future stock index * (1 + risk free - dividend yield)^12

= 1820 * (1 + 0.50% - 0.20%)^11

The future index value after 12 months= 1880.97

The cash flow mark to market proceeds = (future index future value - current index future value) * multiplier

= (1880.97 - 1865.88) * 50

The cash flow mark to market proceeds = $754.45

5 0
3 years ago
To help developing countries expand their industrial base, some industrial countries have reduced tariffs on designated manufact
anzhelika [568]

Answer:

The correct answer is letter "B": generalized system of preferences.

Explanation:

Generalized System of Preferences or GSP is a set of preferential tariffs developed countries set to developing countries usually at a lower rate to boost the trade among those countries which mainly helps developing countries to increase the quality and number of their manufacturing companies.

3 0
3 years ago
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