This would help the Busch company to expand in more countries and Busch will not need to establish Its on distribution channel in Japan, because Shrink is the new distribution channel . Therefore, Busch would only need to make a small investment for the international business _ Finally resulting In a high profit that the international business could be successful in the long run. C. What barriers in the U. S. Did Shrink circumvent as a result of the joint venture? The barriers that Shrink would circumvent are economic, and some political risks are a exult of the Joint venture.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Also Enhances-Busch will be able to benefit from Kirk’s distribution In Japan, which would not normally be Intended In foreign countries.. The Joint venture allows Klan to be learn more about how Enhances-Busch operates and help Busch expand its product across to more countries . D. Explain how Enhances-Busch could have lost some of its market share in countries outside Japan as result of this particular Joint venture? I believe that Enhances-Busch could lose some of its market share if they do not have the right strategies in place to expand which can result in potential risks for . 21.

Explain how to determine the present value in dollars of the non -U. S. Part assuming that you had access to all the details of Walter businesses outside the U. S.. Walter has stores all the world and in the U. S. And to determine the present value In dollars Is when trading other currencies against U. S. Dollars. Its 22. Explain why Nantucket may be able to effectively capitalize on international opportunities such as the Greek island tours? A. Nantucket may be able to effectively epithelial on international opportunities by entering into a new international market such as Greek island tours . . I believe possible agency problems could be associated with the employees of the company so that they would benefit the subsidiary in Athens are not owners, and may have no incentive to t maximizes the wealth of the owners. To reduce the agency costs would have to consider the owner to transfer to Athens. C. Grace’s cost of labor and rent are relatively low , therefore it would benefit Nantucket which enables to create tour business at a low cost.

That would make the dollars to be converted into Euros. Therefore, Nantucket would be affected by the appreciation of the euros against the dollar. F. The Greek Island tour business would expose Nantucket to country risks because of higher taxes in Greece that would put the country at a greater risk to other competitors in Athens. 27. The exchange rate movements will have a unfavorable effect on the NC because it is expected to depreciate by two percent over each year over time. Madder, J. (2012). International financial management (1 lath deed. ). Mason, OH: South-Western, Coinage Learning.