Assignment
Question 1
Impact of Import Restrictions If the United States imposed long-term restrictions on imports, would be the amount of DFI by non-U.S. MNCs in the United States increase, decrease, or be unchanged? Explain.
Question 2
Host Government Incentives for DFI Why would foreign governments provided MNCs with incentives to undertake DFI there?
Question 3
Impact of Financing on NPV Explain how the financing decision can influence the sensitivity of the net present value to exchange rate forecasts.
Question 4
Change in Required Return on ProjectsWoodsen, Inc., of Pittsburgh, Pennsylvania, considered the development of a large subsidiary in Greece. In response to a crisis in Greece, its expected cash flows and earnings from this acquisition were reduced only slightly. Yet, the firm decided to retract its offer because of an increase in its required rate of return on the project, which caused the NPV to be negative. Explain why the required rate of return on its project may have increased.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.