A U.S multinational corporation is considering a new project in Poland.

I need some assistance with this problem. A U.S multinational corporation is considering a new project in Poland, which requires an initial investment of 700 million zloty. The project is expected to have profits of 400 million zloty in the first year of operations and 600 million zloty in the second year of operations. The current exchange rate is $0.35/zloty. The risk-free interest rate in the United States is 4 percent and the risk-free interest rate in Poland is 11 percent. The multinational thinks that the required rate of return on the market portfolio in the United States is 10 percent, and estimates that project beta is about 0.90. There is no information on the required rate of r... click for more

If a U.S. company starts a new subsidiary in Papua New Guinea on January 1

I need more assistance with this question. Previous help did not seem correct or I did not understand the solution. If a U.S. company starts a new subsidiary in Papua New Guinea on January 1 with an equity stake of 700 million kina (the currency of Papua New Guinea), and earns 300 million kina of income during the year which is posted to the retained earnings account, what will equity section of the December 31 balance sheet converted into U.S. dollars look like? The exchange rate on January 1 was $1.25/kina, the exchange rate on December 31 was $1.05/kina, and the company uses the average of the beginning and ending exchange rates as the period average exchange rate. (You may assume tha... click for more

International Trade and Investment

Need general info on the following and current web sites for information. 1. Need a recommendation on one trade and one investment strategy, for global expansion.(should be one of the seven trade and 3 investment alternatives) 2. Pros and cons or advantages and disadvantages 3. Lised in order of importance, recommendations a company would put in place to implement expansion in an international market The company is in manufacturing of mobility equipment,(such as wheelchairs) and has just gone public. At present this is a domestic only. I thought about exporting, which would be the easiest, but wanted to do something that would give this company the most exposure. I need to be poi... click for more

1)What could governments do to help their small companies compete? 2) What resources does an International Internet retailer need other than merely a storefront on the Internet? 3) Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain.

1. Small companies typically have difficulty competing against large multinationals when their governments take part in regional trade blocs. What could governments do to help their small companies compete after the formation of such blocs? 2. Despite the difficulties, many technology companies experienced when the dot-com bubble burst - Internet commerce (e-business) is here to stay. 1) What resources does an International Internet retailer need other than merely a storefront on the Internet? 2) Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain.

International policies, regulation and supervision of foreign investments

Research international policies, regulation, and supervision of foreign investment. Select one topic from your research, and summarize your findings in 3-4 paragraphs. Write an additional paragraph addressing the following question: Has business globalization and the inception of e-commerce impacted the importance of such policies?