International Financial System, business and finance homework help

User Generated

poebja1977

Business Finance

Description

Deliverable Length: 1,500-2,000 words

A regional bank has decided to open an office overseas for serving those businesses that are expanding internationally. Choose a country with a large financial center that you believe would be helpful to your customer base.

  • Discuss some of the challenges you may face in this new environment.
    • What are the cultural, ethnic, social, and educational characteristics?
  • Describe the political and legal systems.
  • How much does the government intervene in the private sector?
    • How will that affect your financial institution?
  • What type of economic system does it have?
    • What is the history of that economic system?
  • How is the country involved in international trade?
    • How does the government get involved in trade issues?
    • Will that help or hurt your financial institution?
  • Will your presence in this country be helpful in your attempts to invest in other developing countries?
  • Is this country involved in any regional integration efforts? How so?
  • Why did you choose this location for your bank?
  • As a manager, what would be your overall assessment about whether you want to pursue opening an office there?
    • Are the financial risks worth taking?
    • Will it be beneficial to all of the stakeholders?
In pursuing this, what type of presence do you think would be best suited to your objectives?
  • How should the plant be financed?
  • Should they hedge foreign exchange or something else? Explain.
  • Identify 3 foreign exchange instruments you would recommend?
  • What, if any, government regulations that would affect earnings and cash flow should they be aware of?
  • Include the need to be aware of inflation and interest rates and how it affects exchange rates.
  • Keep in mind that the country that the plant is in does not necessarily have to be where the financing is done.

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Explanation & Answer

Attached.

Outline
The work is a report that responds to all the given prompts about expansion of a financial
institution to a large financial center. Japan has been used for this case.


Surname 1
Student’s Name
Professor’s Name
Course Title
Date
Expansion to Japan
Given that businesses are expanding to operate at the global platform, it has recently been
a common strategic move for most financial institutions to open branches in other countries with
an aim of offering services to the expanding businesses. As a regional and well recognized bank,
we are no exception. Feasibility studies have to be thoroughly conducted in order to establish the
best location that the bank can open a new branch. Prospective locations have to be large
financial centers for the bank to be sure of securing a strong customer base in the country. It is
also important to consider the extent to which customers from the mother country are starting
branches in the new country as this will definitely increase the probability of retaining
customers, given the fact that most banking services consumers prefer using one service provider
for purposes of their frequent movement from one country to another. The country we believe is
a large financial center is Japan and that is where this report will focus on.
Japan has the third largest economy in the world by nominal GDP. It is therefore a welldeveloped economy, with Tokyo, its capital being a major financial center. The city acts as a
headquarters to a number of various insurance companies and investment banks (Lockwood,
2015). It is, therefore, the best location that the bank can open branches in, in addition to the fact
that so many of the American companies especially those operating in the automobile industry
are expanding to Japan (Lockwood, 2015).

Surname 2
Opening a new branch in Japan will mean having to incorporate all the aspects of the
Japanese culture given their diversity (Becker, Chen and Greenberg, 2013). The Japanese
str...


Anonymous
Really great stuff, couldn't ask for more.

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