Type: Discussion Board Foreign Investment Decisions Part 2 Tue, 6/12/17 Length 2-3 paragraphs Assignment Details Assignment Description Course Comprehensive Project Collaboration in a business environment is a best practice that leverages the collective knowledge of the team assembled. Peer evaluation and support, provided in the spirit of continuous improvement and organizational success, result in higher quality deliverables than generally possible by the efforts of an individual. Please describe the process you plan to use to conduct research, identify findings, and develop the Comprehensive Project due in Unit 5 and present a preliminary outline indicating how you intend to organize the project deliverable. Unit 5 project below: International Business Acquisition and Expansion Name American InterContinental University International Business Acquisition and Expansion Company Acquisition in the European Union As an investor and a corporate head of Fauna Investment Company in Europe, I would prefer acquiring a company from the European Union borders as compared to any other region in the international business community. The European Union as a unified state of the European nations has a lot to offer as compared to any other country/union of countries in the world. The first reason for the choice of the European Union comprises of the superior dominance of the Union in the international business and socio-political sector (James, Debra, & Paul, 2010). Europe has a major influence on the rest of the world, and having a company in a European nation serves Fauna Investment Company with a powerful position to run its operations in the international market. I believe that Europe will provide my company with the right political platform to expand its business operations in the region and the rest of the world. The second factor for acquiring a company in Europe is the language and culture. Most European countries speak English, practice democracy, and have a culture similar to that of the United States. Conducting business in Europe equates to launching a product in the United States. It will not be difficult to operate a company in Europe because of the similarity the region has with the United States of America (Merkert & Morrell, 2012). The customers in Europe have more so the same purchasing power and preference for products and services as those found in America. Europe also comprises of good investment and company acquisition policies and regulations as compared to regions such as Africa, South America, and Asia. The investment policies are friendly and are open to new multinationals venturing into the countries’ business market. Europe also comprises of many laborers from foreign Asian countries and the domestic workers from the European countries which make it easy for any company to acquire its objectivity and boost its financial potential. Disadvantages and Advantages Investing in the Europ ...

1. Type: Discussion Board
Foreign Investment Decisions Part 2
Tue, 6/12/17
Length 2-3 paragraphs
Assignment Details
Assignment Description
Course Comprehensive Project
Collaboration in a business environment is a best practice that
leverages the collective knowledge of the team assembled. Peer
evaluation and support, provided in the spirit of continuous
improvement and organizational success, result in higher
quality deliverables than generally possible by the efforts of an
individual. Please describe the process you plan to use to
conduct research, identify findings, and develop the
Comprehensive Project due in Unit 5 and present a preliminary
outline indicating how you intend to organize the project
deliverable.
Unit 5 project below:

2. International Business Acquisition and Expansion
Name
American InterContinental University
International Business Acquisition and Expansion
Company Acquisition in the European Union
As an investor and a corporate head of Fauna Investment
Company in Europe, I would prefer acquiring a company from
the European Union borders as compared to any other region in
the international business community. The European Union as a
unified state of the European nations has a lot to offer as
compared to any other country/union of countries in the world.
The first reason for the choice of the European Union comprises
of the superior dominance of the Union in the international
business and socio-political sector (James, Debra, & Paul,

3. 2010). Europe has a major influence on the rest of the world,
and having a company in a European nation serves Fauna
Investment Company with a powerful position to run its
operations in the international market. I believe that Europe will
provide my company with the right political platform to expand
its business operations in the region and the rest of the world.
The second factor for acquiring a company in Europe is the
language and culture. Most European countries speak English,
practice democracy, and have a culture similar to that of the
United States. Conducting business in Europe equates to
launching a product in the United States. It will not be difficult
to operate a company in Europe because of the similarity the
region has with the United States of America (Merkert &
Morrell, 2012). The customers in Europe have more so the same
purchasing power and preference for products and services as
those found in America.
Europe also comprises of good investment and company
acquisition policies and regulations as compared to regions such
as Africa, South America, and Asia. The investment policies are
friendly and are open to new multinationals venturing into the
countries’ business market. Europe also comprises of many
laborers from foreign Asian countries and the domestic workers
from the European countries which make it easy for any
company to acquire its objectivity and boost its financial
potential.
Disadvantages and Advantages Investing in the European Union
Several advantages and disadvantages exist regarding the
choices I have made about my company acquisition in Europe.
The following include the advantages and disadvantages of

4. carrying out business in Europe:
Advantages of Company Acquisition in Europe
Europe was from the first region to establish and implement the
Industrial and Agrarian Revolutions. The two revolutions have
endowed the continent with the right skills and human resources
to support the growth and development of any business.
Business has expanded and grown in the European countries due
to a stable political and security system (Capaldo, 2015). The
banking sector in the country continues to thrive with much
investments by financial institutions going to support growing
companies and businesses. I choose Europe because my
company may acquire financial assistance to expand and reach
other European nations. I also do not need to worry about
financial crisis due to the stability of the European Union
economy. The region has a strong currency as compared to the
United States (James, Debra, & Paul, 2010). The European
Union uses Euro while Britain uses the Pound which is very
strong as compared to the dollar in the international market. The
above factor makes it successful for my company to make huge
profits as compared to the United States of America.
Disadvantages of Company Acquisition in Europe
As much as the business in the European Union may be
lucrative, it comes with its demerits. The European Union
comprises of a highly developed status as compared to other
regions of the world which may have a negative impact on any
new company venturing into its business sector. The first
disadvantage includes the high cost of living in the continent.
Renting a company’s operational office, leasing a production
facility, and developing a store for any company is very
expensive (H, T, & D, 2000). Anyone with the hope of starting a

5. company/acquiring one needs to prepare on how to meet the
costs of settling before identifying the operational cost of the
company. The European Union also lacks enough support for
businesses and companies from the government (Capaldo,
2015). The governments of the European countries view the
companies as more of profit making than them needing any
assistance from them. The above-stated factor influences may
companies to fall because they fell to meet their financial
objectives.
Disadvantages and Advantages of Investing in Other parts of the
World and not Europe
The other regions in the world also possess their advantages and
disadvantages as compared to the markets in the European
Union. The following include the merits and demerits of
investing in other international markets other than the European
Nation:
Merits of Investing in Other Countries and Regions in the World
Continents such as Africa and Asia experience a potential
business growth and development as compared to the European
Union and other developed markets. The continents are endowed
with more than enough natural resources that are fit for any
business wanting to expand into the international market. The
regions also have good business environments to incubate new
and diversified business ideas and implement them to their full
potential (Colakoglu & Caligiuri, 2008). The other key
advantage of the regions is that they have huge populations that
may offer unending skills and manpower to the multinationals
and foreign companies that invest in their borders. The nations
found in Asia and Africa are also new in the field of business
and continue to open up to the outside business world to enable

6. them to develop their infrastructure and nurture their growing
economies.
Demerits of Investing in Other Countries and Regions in the
World
The demerits of the countries found in continents such as Africa
and Asia include high instability status and insecurity rates that
may affect any businesses operating within their borders. An
example may include Somali, South Sudan, Iraq, and Ukraine
which experience high instability in security. Such countries act
as a havoc to the growth and expansion of businesses and
companies. The continents also experience low literacy levels
and unskilled labor which may affect the delivery of key
objectives belonging to any company. The continents also tend
to experience a lot of corruption and embezzling of funds which
put the economy at the risk of falling. Kenya, Brazil, and North
Korea among others are named as one of the countries with high
corruption levels in the world which affects foreign investments
(Campbell & Keys, 2002). The leaders are brutal and may close
any company that fails to meet their needs.
Reasons for MNC investing in External Financial Markets
Foreign markets have some benefits to multinationals as
compared to the domestic markets. The foreign markets tend to
offer the multinationals with higher interests funds on their
funds which they invest in the markets. The multinationals may
be used to their domestic markets such that they may be limited
to earning huge profits due to the unstable status of the markets.
Foreign markets possess a high availability of financial
resources and cash flow which may stimulate the fast growth of
the multinationals’ operations. An example of a foreign market
may include the People’s Republic of China which is currently

7. the largest country regarding foreign capital (Rivoli, 2003). The
thriving international economy supports any growing
multinational through providing the nutrients for business
growth. The growing status of a nation such as China presents a
large status of available investable capital that allows any
multinational to expand into its borders.
The availability of the large financial resources and deposits
may influence a growing class of individuals with wealth which
may lead to foreign investments in other international markets.
Another key reason may involve the hope of having the
exchange rates for the new markets appreciating as compared to
their current status (Narayanan, Desiraju, & Chintagunta, 2004).
The appreciation rate of the exchange currency rates makes it
stable for multinationals to sell their products and services in
the new markets since they reduce risks of financial crisis and
inflation. The foreign markets also comprise of several
multinationals that offer a thriving platform for international
and domestic competition.
It influences the multinationals to develop high innovative
products/services to meet the needs/interests of the markets and
also to beat the competition. The new markets may also possess
high developed infrastructure, better skills and productivity
levels, availability of resources, and a good supply chain that
may influence business growth and development (Colakoglu &
Caligiuri, 2008). The above-stated factors may influence lower
transactional costs due to market stability which may influence
a multinational company to meet its profits.
Motives in the Provision of Credit in the Foreign Markets
The aspect of providing credit to companies by some financial

8. institutions possess a tricky status. Some of the financial
institutions have a preference for providing credit in foreign
markets due to some reasons. The financial institutions may
perceive that they may acquire huge returns due to the interest
rates found in the foreign markets. As per the business needs
and interests of the financial institutions, they may invest in
markets that possess higher interest rates as compared to their
home markets. They may also invest in credit in the economic
conditions that have a stronger status as compared to those
found in their home markets (Sinclair, 2014). They may
perceive the above-stated markets to possess the low risk of
default on credit by the borrowers from the foreign markets.
They tend to believe that due to the stable economy, high
financial returns, and a faster flow of currency in the foreign
markets: their financial systems will work well in the new
markets. The financial institutions may also believe that the
new markets have good policies that allow the diversification of
credit and also support the credit system to expand and meet the
market needs (H, T, & D, 2000). Therefore, the above-stated
factors influence the financial institutions to feel secure in the
foreign markets as compared to their home markets.
References
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