SlideShare a Scribd company logo
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
Foreign investment decision
Foreign investment decision

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Foreign investment decision

  • 1.
  • 2.
  • 3.
  • 4. The information on foreign investments is: • Less complete • Less accurate
  • 5. How could a company make foreign investments?  Purchase the stock of a foreign corporation  Make a direct foreign investment
  • 6.  Lower taxes in the foreign nation  Annual depreciation allowances for the amount invested  Access to foreign capital sources
  • 7.
  • 8.  Parent company resources  Common stock sales in the foreign country  Bond sales in the foreign country  Borrowing in world financial markets
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.  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