foreign operations

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frnhf

Business Finance

Description

Discuss five (5) motives for establishing foreign operations. (A 3-page response is required.)

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Explanation & Answer

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Running head: FOREIGN OPERATION

1

Foreign Operations
Institution Affiliation
Instructor’s Name
Student’s Name
Course Code
Date

FOREIGN OPERATION

2

FOREIGN OPERATION
Foreign operations refer to a controlled entity, companion, joint venture, subsidiary or a
branch of the reporting entity, the activities of which are based and conducted in a country or
currency other than those of the reporting entity. Many motives can lead to an individual,
business, government or corporation venture into foreign operations. Some of this reason is of a
significant benefit to the whole entity while others are for the need to fulfill personal interests. In
this paper, I will discuss five of the principal motives that could lead to the establishment of
foreign operations.
Market opportunities, a company that is locally saturated leaves very few numbers of
opportunities for the company to scoop. This is because most o...


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