All categories

3 years ago

What factors , other than tax incentives, should companies evaluate before deciding to invest in a particular country ?

Business

1 answer:

Reptile [31]3 years ago

7 0

Two main risk sources need be considered when investing in a foreign country:

Economic risk: This risk refers to a country's ability to pay back its debts. A country with stable finances and a stronger economy should provide more reliable investments than a country with weaker finances or an unsound economy.


Political risk: This risk refers to the political decisions made within a country that might result in an unanticipated loss to investors. While economic risk is often referred to as a country's ability to pay back its debts, political risk is sometimes referred to as the willingness of a country to pay debts or maintain a hospitable climate for outside investment. Even if a country's economy is strong, if the political climate is unfriendly (or becomes unfriendly) to outside investors, the country may not be a good candidate for investment.

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!

You might be interested in

Medicare covers the cost of care in what countries besides the united states

grin007 [14]

Medicare coverage outside the United States is limited. mostly, Medicare won’t pay for health care or supplies you get outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S., Guam, American Samoa, and the Northern Mariana Islands, Virgin Islands.

3 0

3 years ago

How does inclusivity practised inclusivity in a private company

Sergio [31]

How does inclusivity practised inclusivity in a private company.

4 0

2 years ago

Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in

zlopas [31]

Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

6 0

3 years ago

A market system tends to restrict business risk to owners and investors. This results in which of the following benefits?

In-s [12.5K]

Answer: d)Firms have to pay more to attract inputs, as these inputs have to share the risk.

Explanation: When the market system tries to put restriction on the business risk to owner and other investors , the firms have to give more payment to attract them to market business.

The chances of risk have have to be shared by both the parties so the owners or investors are going to indulge in the business when they gain some benefit e.g.-more payment.

Other options are incorrect because entrepreneurship will not be encouraged through this process. Incomes will not be distributed equally and neither the prudent risk management will be aimed.Thus, the correct option is option(d).

7 0

2 years ago

Congress would like to increase tax revenues by 10 percent. Assume that the average taxpayer in the United States earns $65,000

SSSSS [86.1K]

Answer: 16.5% is the average tax rate that will result in a 10 percent increase in tax revenues.

Explanation:

This is an example of static forecasting since no time parameter is involved.

Now,

Let initial revenue be "R" ,

"n" be no. of taxpayer

∴ R= 65000×0.15×n

R +0.1R= 65000×rate×n

Using the above two equation, we'll get ;

r = 16.5%

7 0

3 years ago