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on International business finance report - Essay Example
Finance & Accounting
Pages 11 (2761 words)
Table of Contents Executive Summary 2 Introduction 2 Financial and non-financial factors 3 The potential risks and possible external strategies to manage such risks. 5 Other strategies available other than establishing a foreign subsidiary 7 Conclusion 8 Question 2 9 Question 3 11 References 15 Executive Summary Purpose of the report is to enlighten the top management about risk that might arise due to opening of a subsidy in foreign countries…
REPORT TO IBF Respected Directors, IBF London (U.K) Introduction IBF Supplies Plc is a London based large manufacturer and distributor of office supplies. A recent forecast shows decline has been shown in the demand for office supplies in the UK. At the same time it is anticipates a strong demand for office supplies in Eastern Europe, Asia and Africa over the next several years. Hence, executives of IBF have started exploring the overseas markets and are planning to establish foreign subsidiaries in new markets. Before entering the market certain aspects are to be considered. These aspects include: Financial and non-financial factors The potential risks and possible external strategies to manage such risks. Other strategies available other than establishing a foreign subsidiary Financial and non-financial factors First of all it is to be made sure that whether the selected countries are going to produce the desired results or not. It is a good thing that IBF has anticipated a strong demand in Eastern Europe, Asia and Africa for the type of goods it manufactures but again a detailed research needs to be done before taking any final decision. ...