30 Jan Assignment 4
This week, you will continue building your small MNC. Work on addressing the following questions while continuing developing your small MNC:
- Assuming that your international business is successful, identify reasons why it may be feasible to establish a small subsidiary in the foreign country rather than continue exporting.
- Identify the disadvantages associated with establishing a small subsidiary in the foreign country of concern.
- Consider a possible project that would result in expansion of your international business. Describe how you would derive a required rate of return for this project. Compare the possible rates of return and compare them to domestic projects. Which one makes better sense for your MNC? Relate this information as if you were explaining it to shareholders.
- If you seriously considered whether to implement your international business idea, you would have to measure the costs and benefits of this idea. Describe how you would estimate the dollar revenue to be received from your business.
- Describe how you would estimate the expenses associated with your business.
- Describe how you would estimate the net cash flows (in dollars) of your business.
- Explain why your estimate of the net cash flows (in dollars) could be overestimated.
Submit your idea for a small MNC using an APA formatted essay. Remember, you should cite and reference all sources.