Assignment:
Question 1. "Foreign Direct Investment and Cross-Border Acquisitions" Answer the following:
- Create a list of 2 to 3 scenarios that would encourage the firm you researched to invest overseas, as well as a list of the most likely risks that firm would encounter when doing so. Explain your rationale.
- Select a country with which you are (at least somewhat) familiar and create 2 to 3 best practices for managing the risks associated with direct foreign investment.
Question 2. "International Capital Structure and the Cost of Capital" Answer the following:
- Create a list of actions the company you researched could take to mitigate the negative effects of operating in a segmented capital market. Explain your rationale.
- Discuss the conditions under which you would recommend a foreign subsidy conform to the local norm of financial structure. Provide examples to support your response.