Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

Exercise 6

In addition to the facts covered in Questions 3 through 5, you learn that the banini is not freely convertible into dollars. The Varoom foreign-exchange and tax laws provide that a foreign-invested joint venture can repatriate up to 50% of its foreign-exchange earnings, subject to a repatriation tax of 15% (in addition to the tax imposed on the joint venture's income). Banini profits can be exchanged only upon prior approval by the supervising ministry (each ministry is allocated a quota of baninis for which it can approve an exchange into foreign currencies). In addition, Varoom's foreign investment law requires that foreign-invested enterprises export a minimum of 50% of their products
a. What alternatives exist to repatriating foreigncurrency earnings in the prospective venture?
b. What U.S. laws, if any, might apply to exports of optomagic gizmos to the United States from Varoom?