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Principles of Finance: Determine if you would want to invest or do business internationally. Why or...

Principles of Finance: Determine if you would want to invest or do business internationally. Why or why not? What issues might you deal with?

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Answer #1

One reason for doing business or investing internationally is DIVERSIFICATION. Many Investor Invest Internationally to Diversify risks. As it is said in finance, DO NOT PUT ALL YOUR EGGS IN ONE BASKET.

Second reason to doing business internationally is to expand the business in other markets specially emerging markets.

Third reason of Investing Internationally is to chase higher returns available from equity and debt markets from emerging countries.

Fourth reason could be to take advantage of fluctuing currencies.

Fifth reason could be to acquire market share in emerging economies to become a future leader in those countries when they will become developed one.

Issues could be to deal with risks involved in exchange rate changes, international political risks, international social risks.etc

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