1. Mexico is considering devaluing the peso versus the dollar. You are the controller for a company considering production in Mexico through the maquiladora program. How does this news affect the decision? Now, suppose you are a local labor union leader; how do you take the news?
2. What is hedging? If a company imports materials, payable in full in 90 days in the foreign currency, why might the company want to hedge?
3. The performance of the subsidiary manager is equivalent to the performance of a subsidiary. Do you agree or disagree? Explain.
4. What environmental factors can affect divisional performance in a multinational firm?
5. What is the purpose of Internal Revenue Code Section 482? What four methods of transfer pricing are acceptable under this section?