Explain the capital structure for new subsidiary


Discuss the below:

Considering the milestone 1 and 2 in the attachment:

Investments/Subsidiary Expansion: Choose a country to enter to create a new subsidiary. Determine the capital structure of your new subsidiary, including the source of funding.

a) Provide an explanation of the country in which you chose to create a new subsidiary. It is possible that the country you selected already has a subsidiary of your MNE, which is fine.

b) Explain what the capital structure for this new subsidiary should look like. Should it be the same as the mother company's? Why? If your subsidiary should have debt, determine the source of the debt and explain your rationale for choosing the source.

Repatriations of Funds: Once your subsidiary turns a profit, evaluate how you will repatriate your profit. You will need to look into the country in which the subsidiary is located and determine if it has any restrictions on blocked funds. If so, you must incorporate the findings into your final decision. Explain if you will repatriate your profit back annually on all, or only partially, and why.

Attachment:- Nature of Wal-Mart products and services.rar

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Microeconomics: Explain the capital structure for new subsidiary
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