module 10 - As the CEO of a MNE (Multi-national Enterprise)...

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As the CEO of a MNE (Multi-national Enterprise) with headquarters in CA, USA, you are considering a project costing $ 90 million and the possible host countries are: China, India, Venezuela and Canada --- these potential hosts have different characteristics that may attract or repel a U. S. investor like yourself. One of the goals is to obtain 25% of the financing (debt) for the project locally from the host country and the rest will be raised as equity/debt in the U. S. – thus the capital markets in the host countries will matter too. Using the discussion on p. 488 of your text as well as your own knowledge of the relevant factors for such a capital budgeting decision, rank the four host countries in order of your preference and explain your answers in detail. (You can consider non- financial aspects of decision making too, if you like). It will be also ok (in fact, desirable) to engage other classmates in a dialogue over their postings vis-à-vis their preferences across these host countries. When CEO make a decision to chose a country where the parent company wants to invest, the parent company should consider financial environment because they have to obtain 25% of financing except political issues, inflation rate, and labor cost. When CEO make a decision to choose a country where the parent company wants to invest, the parent company should consider financial environment because they have to obtain 25% of financing expect political issues, inflation rate, and labor costs. According to the article “
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This note was uploaded on 10/20/2011 for the course FIN 500 taught by Professor Yi during the Spring '10 term at CSU Dominguez Hills.

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module 10 - As the CEO of a MNE (Multi-national Enterprise)...

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