Question: An investment agreement spells out specific rights and responsibilities of
An investment agreement spells out specific rights and responsibilities of both the foreign firm and the host government. What are the main financial policies that should be included in an investment agreement?
Answer to relevant QuestionsAnswer the following questions: a. What is OPIC? b. What types of political risks can OPIC insure against? Identify and explain the main types of cultural and institutional risks, except protectionism. A strongly competitive home market can sharpen a firm’s competitive advantage relative to firms located in less competitive markets. Explain what is meant by the “competitive advantage of nations.” Capital budgeting for a foreign project is considerably more complex than the domestic case. What are the factors that add complexity? As a financial manager, would you prefer that the accounts payable period end before, at the same time, or after the beginning of the accounts receivable period? Explain.
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