King, Inc., a U.S. firm, is considering the establishment of a small subsidiary in Bulgaria that would produce food products. All ingredients can be obtained or produced in Bulgaria. The final products to be produced by the subsidiary would be sold in Bulgaria and other Eastern European countries. King, Inc, is very interested in this project, as there is little competition in that area. Three high-level managers of King have been assigned the task of assessing the country risk of Bulgaria. Specifically, the managers were asked to list all characteristics of Bulgaria that could adversely affect the performance of this project The decision on whether or not to undertake this project will be made only after this country risk analysis is completed and accounted for in the capital budgeting analysis. Since King, Inc., has focused exclusively on domestic business in the past, it is not accustomed to country risk analysis.
a. What factors related to Bulgaria's government deserve to be considered?
b. What country-related factors can affect the demand for the food products to be produced by King, Inc.?
c. What country-related factors can affect the cost of production?
Solved
Show answers
More tips
- A Art and Culture How to Learn Screaming: Step-by-Step Guide for Beginners...
- H Health and Medicine Contraceptive Pills After 35: The Importance Of Choosing The Right Medication...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
Answers on questions: Business
- B Business Colgate s Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries....
- B Business For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for pelkey co. for the year ended...
- B Business Payroll taxes levied against employees become liabilities...
- B Business a sum of $5000 is invested at an interest rate of 5% per year. find the time required for the money to double if the interest is compounded continually...
- B Business You have just won a two-part lottery! The first part will pay you $50,000 at the end of each of the next 20 years. The second part will pay you $1,000 at the end...
- B Business g One major barrier to entry under pure monopoly arises from Multiple Choice ownership of essential resources. diseconomies of scale. the availability of close...
- B Business PeoplePapers, a greeting cards manufacturing company, has retail stores in most parts of the country. It hires its employees from the best universities around the...
- B Business Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer. If the price of barley rises to $8 and quantity...
- B Business Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison...
- B Business A firm has a debt-equity ratio of .64, a pretax cost of debt of 8.5 percent, and a required return on assets of 12.6 percent. What is the cost of equity if you...
Ответ:
a.
Scottie = 30
Top of the lighthouse = 45 (30+15)
The boat = 0
The fish = -10
b.
10 + 30 = 40