Finn432

Research Paper
- Goal of the project
- Theories of International Business
- Corporative Advantage - Imperfect market theory
- Product cycle theory

- International business methods:

o International trade - Licensing
o Franchising - Joint Ventures
o Acquisitions of Existing Operation
o Establishing New Foreign Subsidiaries

- International opportunities:
o Investment Opportunities
o Financing Opportunities

- Exposure to international flow of funds:

o Current Account
o Capital Account

- Factors Affecting International Trade Flows:

o Inflation - National Income
o Government Restrictions - Exchange Rates

- Factors affecting DFI:

o Privatization - Potential Economic Growth
o Tax Rates - Exchange Rates

- Decisions to use international financial markets motives for investing in foreign markets:
o Economic Conditions - Exchange Rate Expectations
o International diversification
- Motives for providing credit in foreign markets:
o High Foreign Interest Rates - Exchange rate expectations
o International Diversification

- Motives for borrowing in foreign market:

o Low interest rates - Exchange Rate Expectations

- Assessment of future exchange rate

- Factors influence exchange rate movements:

o Relative Inflation rates - Interest Rate
o Government Controls - Relative Income Levels
o Expectations
- Assessment of potential arbitrage opportunities:
o Locational Arbitrage - Triangular Arbitrage
o Covered Interest Arbitrage
- Government influence on exchange rate:
o Fixed - Freely Floating - Managed Float
o Pegged
- Assessment Of Purchasing Power Parity
- Multinational Capital Budgeting
- Assessment Of International Trade Financing the Host Country of Project