Exam 19: International Managerial Finance

The usual capital markets used by U.S.-based MNCs that desire international ownership of their equity are

Nico Mining, a U.S.-based MNC has a foreign subsidiary that earns $1,050,000 before local taxes, with all the after tax funds to be available to the parent in the form of dividends. The foreign income tax rate is 30 percent, the foreign dividend withholding tax rate is 15 percent, and the firm's U.S. tax rate is 35 percent. What are the funds available to the parent MNC if foreign taxes can be applied as a credit against the MNC's U.S. tax liability?

In 2003-2004, the United States signed a regional trade pact with the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua called the Central American Free Trade Agreement or CAFTA.

The ________ is a significant economic force currently made up of 25 nations with a population of more than 295 million that permits free trade within the countries that make up this group.

The capital structures of MNCs are influenced by all of the factors below EXCEPT

________ is an international body that polices world commercial trading practices and that mediates disputes between two or more member countries.

The forward exchange rate is the rate of exchange between two currencies on any given day.

The foreign direct investment (FDI) is a multi-national corporation's transfer of capital, managerial, and technical assets from a host country to its home country.