Unit 5 Assignment Details:

The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.

There are different implications of running a company that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:

1. Would you seek to acquire a company within the European Union or outside of it? Why?

2. Describe the advantages and disadvantages of the choice you made.

3. Describe the advantages and disadvantages inherent in the option you did not choose.

4. Explain why an MNC may invest funds in a financial market outside its own country.

5. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

This assignment has 3 parts:

1. What questions do you have about these assignments in Units 1 – 4? What questions do you have about the overarching Unit 5 assignment (See Details Above)? What are your initial thoughts about how you will approach this assignment? Explain.

2. Explain the differences between domestic banks and international banks.

3. How do U.S. companies use international banks?

· Please reply to the presented statement(s) below.

Deliverable Length: 250 words (minimum) per reply

ONE_LaT:

When it comes to Units 4, it says post an executive summary of your Comprehensive Project. Is this executive summary supposed to come from the individual project in Unit 5? What is my initial thoughts about how I’m gonna approach this assignment? I need to start compiling the information that is needed for this report right now.

There a re several difference between domestic banks and international banks. The kinds of deposits they accept and the loans and investments they make distinguish international banks from domestic banks. International banks hold the magnitude to trade foreign exchange. International banks arrange trade finance to enable imports and exports for their consumers.(International Banking Services, 2020) Companies do business with international banks to help facilitate international business, because it could be costly. They are safe from lawsuits. International banks make it easier for Company’s to do business around with an international presence.(Barrymore,2020)

References

Barrymore, J. (2020, September 9). How International Banking Works. Retrieved from how stuff works: http://money.howstuffworks.com/personal-finance/banking/international-banking.htm

International Banking Services. (2020). In Global Financial Management (p. 48). Words of Wisdom, LLC.

TWO_NAI:

Hello Everyone

1) I do not currently have any questions about the upcoming assignments. I will approach every assignment in the same manner. First, I will carefully read all the instructions and questions. Then I will perform extensive research to support my statement.

2) There are many differences when it comes to domestic banks and international banks. First, domestic banks only operate in the boundaries of said country, while international banks operate in many different countries. Secondly, domestic banks only use the currency that is used in whatever country they are located in. On the other hand, international banks dabble in many different currencies. Next, domestic banks are not heavily affected by foreign exchange rates while international banks are. Finally, domestic banks only must worry about local laws and regulation, while international banks need to be aware of the laws where they are stationed at and laws of every other country that they do business with.

3)There are several reasons why a US company would us international banking. For example, a US company many use international banking to invest in a country that has a booming economy or an economy that has a very promising future. Another reason a US company may use international banking is to protect some of its assets. Whether you have a small or large company you can be susceptible to lawsuits. A lawsuit can cause the company to go belly up and you could loss everything. In efforts to keep that from happening some companies may use international banking to keep some or their money safe.

THREE_RIT:

After reviewing each week and reading up on what is to be expect with each following week, I do have a couple questions. First, the G8 and WTO are very interesting to me, but I want to understand why there are only 8, well 7 now, countries that participate in it. Did those specific countries form it, did they get voted into it, is it a power thing? How come more countries are not apart of it? how does one get into the G8? I also want to get a better understanding of how currency in different countries work and how each countries currency is worth a certain amount. When it comes to unit 5 individual project, I do not have questions regarding it right now, even though that may change once I really get into it. Usually when I start working on assignments, I like to sit down and brain storm with different information I know and what I still need to learn. I like to look at the aspects of the paper I known I will not have trouble completing and then looking at the section of the paper I may have a harder time with and really focusing on that.

Domestic banks are banks that solely operate within a certain countries boundaries. International banks are banks that are not restricted to one specific country. Instead, international banks function in multiple different countries (Deng, 2016). A second difference between domestic banks and international banks is the currency that is used with each transaction. Domestic banks have the local currency of the country that they use while international banks use multiple different types of currencies when handling transactions from different countries (Deng, 2016).

References:

Deng, A. (2016) “Determinants and Differences of Domestic and Foreign Commercial Bank Profitability”.

Honors Theses and Capstones. 285. Retrieved from: https://scholars.unh.edu/honors/285