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vfiekz [6]
3 years ago
15

You are a senior manager at a U.S. automobile company investing in production facilities in China, Russia, or Germany. These fac

ilities will serve local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? Why?
Business
1 answer:
Dvinal [7]3 years ago
4 0

Answer:

In general, China, Russia and Germany are three big countries; the automobile company will get benefits if it chooses any of the three countries, but it also faces some challenges. It is well known in Germany that the automobile industry is very powerful. If the company chooses to invest in Germany, it will face numerous competitors. Also, in Russia, the trade barriers will be obstacles for the entry of the automobile company. However, with China's low cost labor and large potential domestic market make it an attractive destination for the direct foreign investment.

Explanation:

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The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,
Igoryamba

Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

= $1596

Change in net working capital will be:

= $1393 - $1596

= ($203)

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3 years ago
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Ulleksa [173]
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3 years ago
Which of the following will increase a company’s current liabilities? You may select more than one answer.
vichka [17]

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

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