Multinational Business Finance

Running head: MULTINATIONAL BUSINESS FINANCE
Multinational business finance
Name of student
Name of University
Author note
Table of Contents

1
MULTINATIONAL BUSINESS FINANCE
Introduction......................................................................................................................................3
Researching a company and investigating its overseas operations in China considering the
investments, capital markets, exchange rates for the foreign country and currency restrictions.. . .4
Ways by which management could use knowledge to teach other small-business owners to break
into this lucrative overseas market..................................................................................................6
Various kinds of research to make the best decision on financing the company and methods for
financing international trade............................................................................................................7
Would you recommend the owner of this small business take the international leap? Why or why
not?..................................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2
MULTINATIONAL BUSINESS FINANCE
Introduction
The topic introduces the concept of multinational business finance, i.e., expanding
business internationally in the global markets. The business organisation named has been chosen
as the case study, which is looking to expand globally and provide products and services to the
foreign market segments to gain more customers and increase sales for the company too. The
topic will discuss about how the company will be able to enter the overseas market what
approaches will be undertaken to manage the capital markets, foreign exchange rates and
investments properly (Manova, Wei & Zhang, 2015). There are certain currency restrictions in
China, which are needed to be considered by the footwear company, because it wants to expand
its business operations and generate more business revenue by entering the overseas markets in
China.
Dansko is a small sized footwear company that consists of 150 employees and annual
revenue of nearly $120 million in United States. The product line of the company basically
includes boots, sandals and sneakers. The company manages the employee stock ownership plan
and conducts consistent monitoring processes to keep the employees skilled, knowledgeable and
active enough to deliver the best quality products and services to the customers. The
manufacturing and production processes are managed with high precision through maintenance
of the labor standards and even on creating lesser impact on the environment (dansko.com,
2018). As it is a small growing company, the company wants to expand business globally and it
has targeted the Chinese overseas markets where the products and services of the company will
delivered for accomplishing the goal of obtaining more customers and generating better revenue
in business.

3
MULTINATIONAL BUSINESS FINANCE
Researching a company and investigating its overseas operations in China considering the
investments, capital markets, exchange rates for the foreign country and currency
restrictions.
While conducting a face-to-face interview with an employee of the organisation, I
obtained relevant information about how the company managed to establish global business
successfully and even created a huge difference between the present and previous years’
generated profit. It is quite normal for a small sized organization to consider the resources
available at first, and then think of the exporting activities to manage global outreach and at the
same time gain long-term business success. Before entering the Chinese markets, Dansko has
established contacts with the local footwear companies and even with the higher officials of the
Chinese footwear industry (Buettner et al., 2012). By representing in China with the support
provided by a Chinese agent, distributor or business partner, it would be easy for the company to
manage the intellectual rights. This allowed the company to protect its IT under the Chinese laws
prior to the entering into the overseas markets. Being a US based company; there were multiple
options for forming a corporate sector in China including the Foreign Owned enterprise,
investment vehicles and Joint ventures too. Dansko’s CEO and manager who have enough
knowledge expertise to conduct researches on the Chinese markets consulted with the IP rights
holders and business lawyers in China. Mandy Cabot (CEO) and the manager Peter Kjellerup
also included lawyers from both United States and China to research the market thoroughly for
making the small sized company succeed in the Chinese market (Shroff, Verdi & Yu, 2013).
The Department of Commerce, US and United States Foreign Commercial services
provided support to the company to offer customized solutions and succeed in the overseas
markets. According to the responses of the employees, USFCS helped the company to prepare