International Trade Finance Assignment

Running head: INTERNATIONAL TRADE FINANCE
INTERNATIONAL TRADE FINANCE
Name of the Student:
Name of the University:
Author Note:

International Trade Finance1
Executive Summary
Globalization can be beneficial as well as very complicated for the foreign investors and hence it
is important for the foreign investors to strategically plan their FDI options.in I do this report on
how the foreign trade finance and FDI managed by foreign firms.

International Trade Finance2
Table of Contents
1.1 Introduction...........................................................................................................................3
1.2 Discussion..................................................................................................................................3
1.2.1 How do global firms manage their international trade finance and foreign direct
investments?................................................................................................................................3
1.2.2 International trade finance..............................................................................................5
1.2.3 FDI and political risk......................................................................................................6
1.2.4 Cross-border acquisitions & multinational capital budgeting........................................7
1.3 Conclusion.................................................................................................................................8

International Trade Finance3
1.1 Introduction
Globalization have helped every taking part country to grow and flourish. Different
investors and MNEs are coming forward to invest in foreign countries and make investment in
foreign financial market. However, there are many terms like investment strategies, position,
condition and risks should tested at first very thoroughly which associated with the investment. It
is important for the multinational companies to analyze their own competitiveness in the foreign
market before investing in there. There are many techniques discussed below which will help the
companies to flourish more and increase their competitiveness for the betterment. The FDI and
other funding options are available for every MNEs which needs proper strategies to apply and
policies to flourish more. They also discuss different instruments are also which will help the
companies to choose their suitable option that will help them to sustain in the foreign market and
do a hassle free business and also being capable of competing with the local competitors. They
also discuss some political risks and investments below with detail to understand which of the
strategy to apply for benefit.
1.2 Discussion
1.2.1 How do global firms manage their international trade finance and foreign
direct investments?
1.2.1.1 Funding
When any company starts their business then it is important to manage their funding
properly. The business can choose between equity and debt for the funding source. The best
option would be to utilize the optimal financial structure where a smart mixture of equity and
debt will help the company to make profit with minimum liability. Multinational companies have