Unit 5 Assignment Details:
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.
This assignment has 3 parts:
1. What questions do you have about these assignments in Units 1 – 4? What questions do you have about the overarching Unit 5 assignment (See Details Above)? What are your initial thoughts about how you will approach this assignment? Explain.
2. Explain the differences between domestic banks and international banks.
3. How do U.S. companies use international banks?
· Please reply to the presented statement(s) below.
Deliverable Length: 250 words (minimum) per reply
In reviewing the assignments for the course, I have noted the discussion boards doesn’t necessarily align with the intellipath lessons past Unit 2. It would be my hope that the discussions were more in line with Intellipath. this would encourage more collaboration with peers relation to course material in the discussion posts. Units 3 and 5 focuses much on the comprehensive project and the executive summary with a focus in formatting the assignment but not the content that is required.
Conversely, the learning material in the course does provide adequate information on Global Financial Management and provide a wealth of knowledge to complete the Unit 5 comprehensive project. One can appreciate that units 3 and 4 helps develop the outline and create a flow for the Individual Project due at the end of the course.
The overarching questions that I have in regard to the Unit 5 assignment is why the European (EU) the focus of MNCs acquiring businesses there. I probably would have asked the question. As a MNC, where would you acquire to do business? Why? The approach that I will take regarding the assignment is to study the Learning Material provided in each unit that focuses on mergers and acquisitions. I will also use the University Library as well as secondary internet resources to do additional research.
At this time, the unit 5 assignment seems very clear as far as the expectations, however I know it will require a lot of research as this topic is not foreign to me but some concepts I’m not as familiar with. My approach to this project is to break down the sections and then I plan on blending them so that the topics flow.
I am interested in understanding more about the Group of Eight, or now the Group of Seven and how it affects and benefits our world and how they came to be and why it only includes a selected few. I’m also curious to know if or how multinational corporations are influenced.
The difference between domestic banks and international banks is that domestic bank is limited to a country whereas an international bank has less restrictions. With that said, a domestic bank only deals with a set currency with an international bank handling multiple currencies and exchange rates. Domestic banking standards of service are much less by serving more regular customers than international banks which adhere to more universal policies and serve a variety of customers for various reasons, however there are many more legalities and procedures due to the many places that overall rules are in place. It could also be apparently noted that domestic banks require less capital to operate, while global banks require more investment.
S Surbhi. June 15, 2016. Difference Between Domestic and International Business. https://keydifferences.com/difference-between-domestic-and-international business.html#:~:text=Domestic%20Business%20is%20defined%20as,several%20countries