This report examines the international banking and finance strategies of PSL, a Malaysian pharmaceutical company, considering expansion into Japan or Thailand. It begins with an introduction outlining long-term and short-term goals, advantages, and disadvantages of international trading. The report then analyzes the most appropriate international business theory for PSL, different modes of foreign presence, and the advantages of a foreign subsidiary. A country analysis follows, identifying crucial political, cultural, and economic factors for overseas investment, comparing key economic indicators for Thailand and Japan, and evaluating their structures' impact on foreign investment. It also assesses financial and political risks and potential agency costs. The report further delves into foreign exchange risk, including types of exposure, the costs and benefits of invoicing policies, analysis of foreign exchange rates, and factors influencing currency values. Finally, it explores probable changes in future spot exchange rates using international parity theories, concluding with recommendations for PSL's international expansion strategy. The analysis includes tables and figures for economic indicators like GDP, employment, inflation, and interest rates for both countries.
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