International Corporate and Finance

INTERNATIONAL
CORPORATE AND FINANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ANGLE ELECTRONICS................................................................................................................1
a) Option to consider by the Angle Electronics from the two options. .......................................1
b) Purchasing business either in India or Poland.........................................................................3
c) Issues and Considerations related to methods of funding........................................................9
d) Potential benefits and cost savings that could accrue............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate finance is the area of finance dealing with funding sources, capital structures of
the corporations, actions of the managers taken for increasing value of firm to shareholders and
tools and techniques used for allocation of the financial resources. International finance also
referred as international monetary economic is branch of the financial economics that is
concerned broadly with the monetary and macroeconomic interrelation between more than two
countries. Present report will reveals about the Angle Electronics which is a manufacturing
business selling range of electronic products. Majority part of the business is from UK but has
significant level of sales by exports through websites. Sales are directed towards retail customers
and some of the wholesale outlets. Company is proposing to set up manufacturing units in
various parts of world that are Australia and Malaysia. For the establishments company is first
planning to expand its distribution capacity for expansion by considering two option that are
India and Poland. Company wants to make investments in the most viable options.
ANGLE ELECTRONICS
a) Option to consider by the Angle Electronics from the two options.
Companies find it appealing to extend the business overseas. Company by selling the
products internationally in huge markets maximise their profits and sale, gain brand recognition
reducing risks of operating in single market. Business in proposing to expand the business has to
decide the country which is beneficial for expansion. List of different countries should be
prepared and analysing the benefits and limitations of the country are to be identified. Identifying
the demand of the products in each country, political and economic stability and the other factors
influencing the business are to be analysed (Hawbaker, 2018). It has to research on inflation
rates, growth rate and GDP, purchasing power of the people, licensing and exports rules of the
country company is proposing to operate in. Once selecting company is required to analyse the
time which is best for entrance after carefully evaluating the business environment of the
country. Time where there is highest probability of sales should be entered. Organisation then
have to decide about the scale of entry as it is crucial factor. This requires the company to give
important attention as signifiant amount of funds are installed and the failure of business may
affect the existing business of the company. Company is required to find the methods through
which it will be entering in the market.
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Angle Electronics proposing to expand the business in India and Australia is first
proposing to expand the distribution channel. Company could go for joint venture in England or
Poland whichever is more suitable options. Joint venturing is a successful expansion strategy hat
is considered by most of the companies for protecting the impact of investments over the existing
business of company. Joint venture refers to forming new business by pooling the resources of
two or more companies. Joint venturing with the local business will provide the company with
all the information and trends of the market that will help the company to establish its business
successfully (Fujiwara, 2019). Joint ventures share their knowledge and resources for promoting
their business. This cuts the investment cost to half of the company. Risks and uncertainties
associated with the business are shared between the venture companies. It could promote its
business over the social platforms for increasing the sales of the products and services. This will
also increasing the brand recognition and awareness among the people of the new company. It
will enable the company to maximise its profits and revenues. The option of joint venture will
have higher returns at lower risks.
It could also adopt for agency services for expanding the distribution channels. This
could be established on contractual basis agency will be providing the products and services to
the markets of country. Sales and orders could be managed online by the company (Guo, 2019).
This will save considerable amount of investments of the company reducing the risks of failure
as the product will be distributed as per demand. Agency business is highly promoted for
expansion of the distribution channels by the corporations. In this system Angle Electronics may
hire a company in India or Poland as its agent for making the distribution of its product in the
local markets of the country. It could be made on commission. It will not require the company to
establish a business in entirety overseas investing funds. It will enable the company to analyse
the local markets of India or Poland whether the products are getting acceptance of the customer.
On getting required demand company can make plans for establishing business units in Country
this will save funds as well as help company in analysing the market.
Company can also enter the market through acquisition of small companies of the
country in which it is proposing to extend its business. Acquisition refers to purchase of one
company by other for gaining significant controlling of the company. This could be acquired by
payment of cash for the assets and liabilities or it can also purchase significant shares of the
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