Foreign investment decision

Post on 22-Jan-2018

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Transcript of Foreign investment decision

The information on foreign investments is:

• Less complete

• Less accurate

How could a company make foreign investments?

Purchase the stock of a foreign corporation

Make a direct foreign investment

Lower taxes in the foreign nation

Annual depreciation allowances for the amount invested

Access to foreign capital sources

Parent company resources

Common stock sales in the foreign country

Bond sales in the foreign country

Borrowing in world financial markets

The International Monetary Fund (IMF) was created and is still active today

Its purpose is to provide credit for development purposes to underdeveloped countries.

Subsequent to World War II

Prior to 1944

By the mid-1950s

In the early 1970s

In 1976