Question 2

(a) Samsung Electronics Co Lid (Samsung) is considering two sites in Arizona and another one in New York in addition to Austin, Texas for a new USS17 billion chip plant, according to documents filed with Texas state officials. The documents dated Feb 26 also estimated tax abatements concerning the plant will be about US$1.48 billion over 20 years from Travis County in Texas and the city of Austin. up from the US$805.5 million previously mentioned.

Samsung is in talks with they dresar Ar organd New York, with each offering property tax abatement and "significant grants and/or refundable tax credits" to fund infrastructure improvements the documents said.

(Source: Theedge Malaysia; March 17, 2021)

Required:

(i)Discuss ANY FOUR (4) reasons for the Samsung expansion.

(ii)Critically discuss the impact of property tax abatement on Samsung.

(b) South Korean e-commerce company Coupang made its market debut on the New York Stock Exchange through an initial public offering (IPO) and the company's stocks began trading at $63.50 apiece, giving Coupang a market capitalisation of $102.2 billion. Goldman Sachs, Allen & Co and JPMorgan were among the lead underwriters for the offering

(Source: CNBC; March 11, 2021)

Discuss FOUR (4) reasons for a foreign stock issuance.