answersLogoWhite

0


Best Answer

Key factors include whether the cash flows of the affiliate are closely tied to the state of the local economy

or to the world economy, the correlation between the local and domestic economies, and the volatility of the foreign

affiliate's cash flows relative to that of the domestic operation. The greater (lesser) each of these factors, the higher(lower) the foreign affiliate's cost of capital relative to that of the domestic operation. In general, the closer these factors

are to each other, the closer their costs of capital

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What factors should be considered in deciding whether the cost of capital for a foreign affiliate should be higher lower or the same as the cost of capital for a comparable domestic operation?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What factors should be considered in deciding the station of chain survey?

What are the factors you should considered in deciding the station of a chain survey


What factors should be considered in deciding the stations of a chain survey?

When deciding the stations of a chain survey, factors to consider include the size and shape of the area being surveyed, accessibility of the stations, terrain conditions, accuracy requirements of the survey, and any existing landmarks or boundaries that can serve as control points for the survey.


What are the factors to be considered while deciding location for hospital?

you have no answers ?


What factors do you think people might have considered when deciding who was at the top and who was at the bottom?

lololol


What are some important issues to considered upon deciding about how to proceed?

In deciding how to proceed, you must go eat a slice of your momma's chocolate chip banana bread.


What factor would be considered when deciding upon a building material?

durability affordability performance


What factors are considered in deciding who is most likely to win euro 2012?

nkklkl klo


What elements need to be considered when deciding on the numbering and layout of a Chart of Accounts?

the numbering and layout of a Chart of Accounts?


What are the biggest factors when deciding real estate values?

There are a number of factors that must be considered when deciding on real estate values. Some of the most important are the age of the house, property size, and number of bedrooms.


What factors need to be considered when deciding how to produce a document for a specific purpose?

i dont know but it could be newton meter


What things might be considered when deciding between iron and ruthenium as a catalyst?

By using your mind and imagination, you CHEAT! XP


What alternatives might the railroad workers have considered when deciding what to do with the ruins of the indus city?

I really don't get it but i think it is 4