Question

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?

Homework Answers

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
do you think it is advisable to invest internationally? Explain your position. If you do invest...
do you think it is advisable to invest internationally? Explain your position. If you do invest internationally which markets/countries you are likely to invest in? Will you be investing directly or through a mutual fund or other portfolios comprised of foreign securities but offered by Canadian financial institutions?
If you had a business today would you invest in the BOP market? Why or Why...
If you had a business today would you invest in the BOP market? Why or Why not?
You have been offered a business deal if you invest $50,000. You estimate that there is...
You have been offered a business deal if you invest $50,000. You estimate that there is a 7% chance of making $100,000; 12% chance of making $75,000; a 23% chance of making $90,000; and 77% chance of making $0. How much should you be willing to pay for this deal? Do you think you would actually pay that much? Why or why not? [Show your work]
After review Principles of managerial Finance, 8 th edition by zutter textbook, what do you believe...
After review Principles of managerial Finance, 8 th edition by zutter textbook, what do you believe is the pattern of organization of the material. How is the information organized and why did the authors organized that way? Write a brief response.
Why would a business want to ignore a project's risk?
Why would a business want to ignore a project's risk?
If you were to start a business, which forms of business ownership would you select? Why?...
If you were to start a business, which forms of business ownership would you select? Why? What might be the biggest drawback for you in this form of ownership?
Why should Principles of Accounting be taken by all business majors, rather than by only Accountants...
Why should Principles of Accounting be taken by all business majors, rather than by only Accountants or Finance specialists? (1500-2500 words)
Introduction of business finance Assume that you recently graduated and have just reported to work as...
Introduction of business finance Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Edmund PVT Ltd. One of the firm’s clients is Michelle Torre, a professional swimmer who has just come to the Australia from Canada. Michelle is a highly ranked swimmer who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amount of money. Michelle is very...
Suppose that you have an opportunity to invest in your cousin’s burgeoning ecommerce business. If you...
Suppose that you have an opportunity to invest in your cousin’s burgeoning ecommerce business. If you were to invest $5,000 now, your cousin guarantees that you will receive the following cash flows: $3,000 at the end of 2 years, $2,000 at the end of 4 years, and $1,000 at the end of 6 years. In order to finance this investment, you would withdraw cash from your TFSA which is generating returns at a rate of 5% compounded annually. Determine (a)...
You want to invest part of your monthly paycheck to finance a vehicle. You wish to...
You want to invest part of your monthly paycheck to finance a vehicle. You wish to have enough in the account to withdraw $1000 a month every month for 8 years, beginning 20 years from now. at the end of the 20 year period, you wish to stop investing into the account. The account pays 0.5 interest per month. a.) how much money will you need 20 years from now to achieve this? b.) how much must you deposit each...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT