AFM333 Study Guide - Intracorp, Transfer Pricing, Local Ad

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM333
• Professor: Darcy Delamare

Document Summary

Framework for marketing in the international firm: environment of international business (culture, politics, legal, monetary and the financial environment of the firm, global marketing strategy target customer segments and positioning. International marketing program standardization/adaptation: global branding/product development. International price escalation multilayered distribution system causes end price to be significantly higher than domestic prices in the host country, giving the exporter a significant disadvantage. Strategies to combat are as follows: redesign product to remove cost: shorten distribution channel. 2: ship parts unassembled = lower tariffs. 4: move production/sourcing tariff class reclassified, transfer pricing repatriate profits, shift profits to low tax country, typically centralized. Independent intermediaries (for exporter, subsidiaries for fdi and seek to minimize channel length. International financial management transactions in different currencies/diverse environments: restrictions on cash flows, country risk and varying tax/accounting systems, access funds via bond market, stock exchange, banks, venture capital whatever cheapest.