BUS 151 Lecture Notes - Lecture 11: Williams International, Daniel Ortega
9 May 2020
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Sovereign nation having independent and absolute power over a territory. Deals with government and its within boarders. What a country does within its own boarders is its own business. When you go overseas you must abide by their legal system. The risk of entering into another jurisdiction (sovereign nation) Risk of change in government policy when doing business in another country. Assets = liabilities + equity for the assets worth. Reduce political risk: higher level of debt, takes the place of dividends. Overseas company with high taxation on foreign companies. Interest is something not taxed reduced taxes. Confiscation if the government takes your assets and does not compensate you. Nationalization if the government takes over an entire industry. Creeping expropriation taking to change limiting what a company can do by taking. Governments can limit how you run your business: Royalty payments tax money going out of country (royalties tax)
