Question

Select a foreign market that you will be entering and explain how the foreign investment will be financed and how the financial structure of the foreign affiliate should be configured.

Answer 1

I will enter into the Chinese markets as they have rapidly growing and it offers varieties of benefits for the startup .Since it is a fast growing economy there won't be any difficulty in getting demand for the product and the government also supports the coming of new start ups

I will raise capital by issuing equity shares as it gives capital fast and return will be given only if there is profit,also will issue some debentures and take loans for the initial setup of the organisation

Financial structure should be a mix of equity shares ,preference shares and debentures which is the ideal structure for a new organisation