Finance for International Business | Report

Running head: FINANCE FOR INTERNATIONAL BUSINESS
Finance for International Business
Name of the Student:
Name of the University:
Author’s Note

FINANCE FOR INTERNATIONAL BUSINESS
1
Table of Contents
Introduction.................................................................................................................................. 2
Discussion................................................................................................................................... 2
Evaluation of Investment..........................................................................................................3
Weighted Average Cost of Capital...........................................................................................5
Foreign Exchange risks............................................................................................................6
Conclusion................................................................................................................................... 7
Reference.................................................................................................................................... 8

FINANCE FOR INTERNATIONAL BUSINESS
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Introduction
The current assignment focuses on analysing the business of Hatfield Manufacturing
System plc. The business is involved in developing and designing the manufacturing systems.
The company aims at engaging itself in research and development activities in order to gain
competitive advantage from its competitors. This helps the organization to gain profit and
increase the performance of the business from its various operations of the business. The
company aims at expanding its business operations by new investment for a new project. The
new investment will bring more revenue and profit to the business. The assignment focuses in
the feasibility of the business of the new business plan which the company is trying to focus on
through financial perspective. The second part of the paper that is the discussion part will
include the details of the financial aspects that is required for the business (Qiu, Shaukat and
Tharyan, 2016). In order to determine the feasibility of the business, the technique of investment
appraisal so as to take proper decision regarding the business. The technique will help to
determine whether to proceed or not to proceed with the investment. The paper would also
analyse the risk associated with the proposed project and appropriate suggestions are provided
in each and every step. This would help to minimize the risk of the business.
Discussion
The Hatfield Manufacturing System plc business is aiming at expanding its business
operations in order to achieve global recognition and earn more revenue and profit from the
business. In order to successfully accomplish the above statement, the business will have to
plan its investment in a plant basically in Turkey. This would enable the senior management of
the company for an opportunity to penetrate in the new market. It is important for the business
to consider all the factors which could impact the income of the business which will be
generated through the new investment. The factors are considered as the most important
aspect in order to take appropriate decisions for the business’s new investment. The factors
include infrastructure of the country where the business will be established and the cost of the
resources.
The region Turkey has various opportunities and advantages for the business in terms of
government regulation. The government of the country supports foreign investments and
therefore, the proposed plan will be profitable Zehir et al., 2019). Moreover, the country
infrastructure is appropriate for the business and therefore the business operations of the
company will be highly supported. The county is well-known for its educated population this
would enable the management to recruit highly skilled workforce. This would increase the