Explain why an mnc may invest funds in a financial market

Assignment Help Operation Management
Reference no: EM132231718

The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.

There are different implications of running a company that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:

1. Would you seek to acquire a company within the European Union or outside of it? Why?

2. Describe the advantages and disadvantages of the choice you made.

3. Describe the advantages and disadvantages inherent in the option you did not choose.

4. Explain why an MNC may invest funds in a financial market outside its own country.

5. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

Requirement: 5 to 7 pages, APA Style,

Instructions: You don't necessarily have to use an established company. You can just write about the EU and how it functions for global businesses. If an outside business was to wet their feet on the EU shores, what will be the advantages and disadvantages? How will trade regulations, labor laws and political output reflect a newly established business in this area of the world? Will it be such a difficult task to manage an outside business in EU territories that your conclusion would be not to business in the EU, or would it be the opposite based on your findings? These are things to consider as an option when building your paper. It might be easier for you answering the objectives instead of using a real or mock company.

Please include You must include in-text citation

Remember to use your own words, always cite material and consider paraphrasing

Read through the assignment details. For the project, follow each objective presented. Think of the thesis statement you'll make or list your intent in the abstract of the paper. Is global expansion in the EU a good idea? Fill in these objectives with the research you've found on the EU, which in the end, will explain whether or not expansion is a viable option.

Again, stick to the objectives as a way to keep your paper structured. Not everyone reads the directions the same. I have had some students in the past go out of their way to create their own make-believe company to justify their research. If you wish to be creative, I won't stop you from doing this, but be aware this option might cause for extra research and you may be making things more complicated for yourself. There have also been some students that decided to research companies that have had both global success and failures. I ask you use them as small examples in your research but don't make these companies a main focus. I don't need to see a bio on a company. Come up with your own ideas and direction.

Attachment:- financial management.rar

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European Union is a single market for moving of people, goods, money and services from one place to another. There is mutual recognition in terms of negotiation and removal of barriers. There is more disadvantage in terms of acquiring of Company within the European market as scope of expansion and growth will become limited and will also led to fixing of boundaries for moving ahead for acquisition. Foreign investment is important for multinational Companies as it gives them more opportunities to grow and increase their earnings. In the same way financial institution also requires to diversify its credit provision to manage the risk.

Reference no: EM132231718

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len2231718

2/11/2019 2:08:00 AM

Remember to use your own words, always cite material and consider paraphrasing, but please don't copy! Try not to quote anything longer than one or two sentences long. If you need to include more information, then try paraphrasing what the author is trying to say with your own words. Examples: Ex. 1: According to Edward Finkle (2011), "Investing should be a major priority, especially at a young age" (p. 199). This can also help build credit. Ex. 2 (paraphrasing): Building credit is incredibly important, and individuals can start even as soon as high school or at working age (Finkle, 2011, p. 199).

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