Define what the company should consider

Assignment Help Other Subject
Reference no: EM132205430

Question: Executive Summary

This document will provide a detailed summary of what the company should consider when deciding to invest into foreign markets. The intent is for the Chief Executive Officer (CEO) to get a better understanding of the European Union Market. Including some advantages and alternatives within the EU.

The European Union consists of 28 different countries, each with their own governments and economies. The EU was created to stop the wars between these 28 countries which was the initial cause of World War II. There are still a few countries with their own currencies but the EURO is the currency of the EU. If the company were to acquire a company within the EU we could use this as a stepping stone into the European Market. According to the Pew Research Center, the EU is the second largest economic power by GDP in 2016 of $20.3 Trillion behind China of $21.4 Trillion. There is a huge advantage investing into such a big market like the EU. With this acquisition the new market allows for us to reach an additional +500 Million people within the EU. This is on top of the +300 Million from the USA.

Some disadvantages in acquiring a company from the EU would be the fact that a lot of these countries still speak their own languages. However, the predominantly spoken language of the EU is English. The reason this is a disadvantage is the fact that the company may need to hire some translators or train our employees which will cost more money. Another disadvantage is the distance from location to location. From the USA to the EU is a huge distance to cover so the upper level management will need to be in constant communication with the headquarters company so that the CEO is aware of all things that are happening.

If the company wants to become an MNC within the next decade, it must invest in foreign markets. An MNC would invest into foreign markets because it's a great rule of thumb to not have all your eggs into one basket. For example, if we had our money only invested into the USA and the market crashes again like it did back in 2008 then are assets would crumble. Investing into other markets allows for diversity and for leverage in other markets.

Investing in other markets is also done by financial institutions to gain trust in foreign partners as well as creating alliances for their customers to use other banks in foreign countries. For example, Bank of America created a Global ATM Alliance with other foreign banks to allow their customers to withdraw from their ATMs overseas without a fee. This is done because of the trust with each of the banks within this alliance. Therefore, investing into foreign companies is something the company should consider in the future to adapt to changing environments within the market.

Reference no: EM132205430

Questions Cloud

What are some of the environmental issues involved : What are some of the environmental issues involved in a decision by a company to outsource manufacturing operations to a foreign country?
Market pressures and competition among rivals : Market pressures and competition among rivals become very brutal in contemporary times.
Calculate the differences in cost and risk : Calculate the differences in cost and risk. Explain why the costs and risks of external financing are important for the organization to understand.
Leading global insurance organization serving business : Insurance Corporation is leading global insurance organization serving business and individuals with broad range of insurance products-insurance-related service
Define what the company should consider : This document will provide a detailed summary of what the company should consider when deciding to invest into foreign markets.
Description and details of the proposed change : Write a paper synthesising organisational change theory and practice in the unit. Description and details of the proposed change
About our need for titles-positions in today organizations : What are your thoughts about our need for titles and positions in today’s organizations?
Sources of value might be developed for product : What other sources of value might be developed for the product you identified? You can be creative with this response.
Write a marketing plan for a clothing or textile business : Write a marketing plan for a clothing or textile business, include, abstract, and mission purpose and objective. Must have headings and sub headings

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd