Explain why financial institutions prefer to provide credit

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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:

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

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

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

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

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

Reference no: EM132663071

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