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Export Based Companies And Foreign Equity Investment

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Explain and describe one type of business that might be most successful using an export-based strategy, and one type of business that might be most successful using equity investment overseas and explain why each would be successful using the given state.

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One type of business that would be most successful using an export based strategy is CNC machine tools industry. This industry will be most successful for exports from the United States because a good export market exists in the European countries (1). The local market is highly competitive and price cutting is rampant. In contrast, export of CNC machine tools will be successful. The exports are successful because the technology of US machine tools is advanced, the latest computer programs can be uploaded onto the machine and the tools cut according to the ...

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The answer to this problem explains export based company and foreign equity investment. The references related to the answer are also included.

See Also This Related BrainMass Solution

Foreign Direct Investment (FDI)

Consider an investment in an international venture. Identify the advantages and disadvantages of this investment based upon the following:

- Forecasting the foreign currency exchange rate
- Interest rate parity and forecasting
- Foreign investment policies
- Government limitations on foreign investments
- Trade regulations and policies
- International finance regulations

Also additionally, identify the advantages and disadvantages of this investment based on the capital structure of the firm.

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