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Essay / Research Paper Abstract
This 7 page paper answers two questions on international business. The first question considers the strategy that may be used and how the strategy may be forming 84 a company that wants to use intermediate as part of its international operations. The second question examined some of the barriers which exist in undertaking international trading, and chooses one in order to examine mitigation strategies, the area examines is the currency exchange risk and the way hedging may be used. The bibliography cites 5 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEIBquest1.rtf
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Unformatted sample text from the term paper:
in the business process. The area may be seen as a potential destination if the investment is to take place by way of foreign direct investment (FDI) foreign direct investment
can be divided into two main groups, or main topologies; market orientated typology and export orientated topology. Market orientated foreign direct investment
is undertaken by a company who is choosing a location in making an investment decision based on the idea of gaining access to market. One of the main underlying motivations
for market orientated FDI is avoidance or reduction of inherent transaction costs. These can include transportation costs, such as moving goods from will market to another, tariffs which may need
to be paid if exporting goods into particular market, as well as other areas trade which can include exchange-rate and interest-rate uncertainties. In simple terms, market orientated foreign direct investment
would take place where a firm sees specific is wanted use in undertaking operations in another country, and ownership advantages, as opposed alternative strategies, such as exporting to that country
(Farka?ov, 2002). Considerations within this category of FDI when include the potential size and value of the market within the host country and issues such as the GDP, market size
as well as disposable income potential aggregate demand in the economy are likely to be considered (Nellis and Parker, 2006). Export
orientated foreign direct investment is undertaken as a form of strategy, where the location of the investment is undertaken to ensure that the company can reduce example production costs. The
usual paradigm associated with this type of foreign direct investment will see production undertaken within the host country, which is likely to have a comparative advantage is required to attract
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