Friday, May 10, 2019
Multinational Corporation Expansion Essay Example | Topics and Well Written Essays - 1500 words - 2
Multinational Corporation Expansion - Essay ExampleThe international finance dimension of governmental risks and foreign alter encompass all the foreign exchange and political commandment put by a country to foreign investors. Almost e truly country has unique political and foreign exchange risks. By venturing into Ugandan market, PWC would be exposing itself to risks associated with this country. It would also be exposed to opportunities that arise due to both the regulation of foreign exchange and other political regulations. Uganda is a country that has few foreign exchange restrictions and does not charge very high interest rates to external investors. Therefore, this would be a potential prospect for PWC in its attempt to venture into this market. However, this country is very politically unstable and its elections are always attended by violence. Therefore, its economy fluctuates from time to time, which can raise a potential risk to PWC.The market speck dimension of inter national finance encompasses legal restrictions, transaction/ transportation woos, information asymmetry, and discriminatory taxation (Eun & Resnick, 2007). This increases the cost of operation or even complicates the operations of the international organizations. Uganda has very few legal restrictions and discriminatory taxation and therefore this would act as a potential opportunity for PWC in its attempt to venture into this Ugandan market. However, Uganda is one of the most underdeveloped countries in the East African region. As a result, it has under-developed infrastructure and very few transactional services. Therefore, PWC might encounter high transactional/transportation cost as well as the unavailability of transactional/ transportation services.Expanded opportunity set dimension of international finance is the location of production in any country or region to maximize performance and raise funds (Eun & Resnick, 2007). In
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