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List four dimensions of human resource
Planning, Organizing, Directing, Controlling
List (at least) three training types that may reduce expatriate failure.
Cultural training, Language training, Practical training
List and contrast four dimensions that predict success in a foreign posting.
Self-Orientation: Possessing high self-esteem, self-confidence and mental well-being, Others-Orientation: Ability to develop relationships with host country nationals, willing to communicate, Perceptual Ability: ability to understand why people of other countries behave the way they do, being nonjudgmental and flexible, Cultural Toughness: Relationship between country of assignment and the expatriate’s adjustment to it
List four agencies in the U.S. that impact the foreign operations of the U.S. companies
U.S.Customs and Border Protection, Office of Foreign Assets Control, International Trade Administration and the Internal Revenue Service.
List (at least) three benefits a company may obtain if it adopts the IFRS, according to the OECD report.
improved information for managers to make better decisions, reduced cost of capital, enhanced competition, better access to capital, consistent reporting of subsidiaries and transparency that can assist in mergers and acquisitions
List at least three (3) merits of sending expatriates to manage overseas organizations.
International companies are not able to find qualified personnel in host countries; To control the subsidiary operations, To introduce and educate host country personnel with companies’ policies and procedures, To provide training ground for understanding complexities of managing across diverse environments in preparation for senior postings
List at least five benefits of standardization.
R&D efficiency, distribution effectiveness, strategic synergy, resulting in cost savings, avoids duplication of efforts and streamlines operations, compete strongly with other global brands.
What are the different terms of payments in international transactions? Who bears the risk when the terms require an advance payment? Who bears the risk in an open revolving account?
advance payments, letters of credit, documentary collections and open revolving accounts. In advance payments, the importer faces the risk that the exporter may not deliver goods according to specification. In an open revolving account, the exporter bears all the risk of payment.
List four (4) factors that affect the choice of IB organizational design.
In centralized organizations, most of the power and control of the company is vested at the headquarters. In a decentralized organization, many of the decision making is left to the country-level managers. factors: international company’s corporate philosophy, the type of products and services it sells, the size of the company, and host government regulations
List four (4) terms of payments in IB transactions.
advance payments, letters of credit, documentary collections and open revolving accounts
The balance sheet of a U.S. company has US $200 million in assets and US $200 million in equity. Its subsidiary in Belgium has assets and equity valued at €100 million. The exchange rate today is US$1.50/€1. At the end of the year, the exchange rate changes to US $1.25/€1. Do they report an unrealized loss or gain, and how much (show how you derived your answer)?
The value of the Belgium assets has decreased to $125 million from $150 million. The U.S. company in its consolidated balance sheet will report an unrealized loss of $25 million on a separate line in its equity account.
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