Question 1

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

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Question 2

What are the advantages of using royalties and fees to move money across borders?

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Question 3

Describe the problem of blocked earnings.

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Question 4

Explain the concept of transfer pricing.

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Question 5

What are the nine possible combinations of the three exchange rates proposed by Lessard and Lorange in the control process?

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Question 6

Define tax credit and tax treaty.

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Question 7

What are the considerations when seeking external financing for international business?

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Question 8

Describe the three exchange rates that can be used to translate foreign currencies into the corporate currency in setting budgets and in the subsequent tracking of performance that Lessard and Lorange pointed out.

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Question 9

Describe three factors that complicate the process of an international business.

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Quiz 20: Accounting and Finance in the International Business