Purchase Solution

International Finance: Using Financial Markets to Expand

Not what you're looking for?

Ask Custom Question

Many of the world's leading companies are multinational corporations with operations scattered throughout the world and it makes sense for them to be concerned about the international environment. But why must purely domestic firms be concerned about the international environment?

and

Suppose you have invested in a baby blanket manufacturing operation and have located contracted with a production facility in Costa Rica. How might you use international financial markets to expand this operation? If you decided to move your operation elsewhere, then where might that be?

Please see file

Purchase this Solution
Solution Summary

This solution discusses why a purely domestic firm must be concerned about the international environment and how a baby blanket manufacturing operation that produces in Costa Rica might you use international financial markets to expand its operation. It also discusses if the operation moved elsewhere, then where might that be?

Solution Preview

Here you go. I hope this helps- please let me know if you have any questions.

Many of the world's leading companies are multinational corporations with operations scattered throughout the world and it makes sense for them to be concerned about the international environment? But why must purely domestic firms be concerned about the international environment?
________________________________________
Multinational corporations are concerned about the international environment because their business is dependent upon exchange rates, labor rates, and market security. As the world becomes increasingly flat, it is key that multinational corporations maximize their effectiveness by ensuring they are operating in countries in which their investment is maximized. Multinational corporations have the ability to shape trade, and be shaped by world events. Purely domestic firms, however, must also be concerned about the international environment. In part, this is because domestic firms are competing with multinational corporations or organizations that may be sourcing services or products internationally. This can result in lower cost of goods, which may be difficult for the domestic company to compete with. At the same time, ...

Solution provided by:
Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
Recent Feedback
  • "Thk u"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • Globally Expanded Company

    The main advantage to the finance/banking markets is that there is always a need.

  • Corporate Finance with an Exchange Rate

    International finance must use different techniques to consider constantly fluctuating markets aside from basic exchange rates.

  • Global Finance - foreign exchange, derivative markets and parity

    If a company is planning to go global but wants to protect itself from fluctuations in foreign exchange it can do so by hedging its position using forward contracts in foreign exchange.

  • Internationalization of Global Finance

    Internationalization of the subject of finance is internally linked to globalization wherein globalization has driven the necessity for previously "closed-off" financial markets to become a part of the international finance system.

  • International Monetary Fund - Globalization

    b. a reaction to the other forces of change affecting financial markets? Please refer to the attachment. Internet and technological advances in computing power and communications are studied.

  • Expansion from Domestic into International markets

    281560 International Business International markets are appealing if a company is looking to expand to new markets or customers. When the decision is made to go international, there needs to be a lot of research and some serious planning.

  • Money, Banking and International Finance

    197492 Money, Banking and International Finance 1. I would like to understand what this truly means and what globalization has to do with financial markets and how they impact the Healthcare. When I read this article it seems to be boring.

  • International Financial Management

    200993 International Financial Management For your job as the business reporter for a local newspaper, you are given the assignment of putting together a series of articles on the multinational finance and the international currency markets for your readers

  • Growth of foreign financial markets; use of an intermediary

    409579 Factor in growth of foreign financial markets; use of financial intermediary 1. What have been the major factors contributing to growth in the foreign financial markets? 2.

View More Related Solutions