BUS 151 Lecture Notes - Lecture 2: Williams International, Cash Flow, Overseas Private Investment Corporation
9 May 2020
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Document Summary
Transfer of technologies, managerial expertise, and financial resources. Future growth cannot rely entirely on domestic growth. Use financial resources from one market to fight in another market. Exchange rate: the price of one currency in terms of another: floating exchange rates are determined by market conditions alone, managed float is determined by government managed demand and supply. Depreciation and appreciation of one currency in relation to another. Natural hedging: buying and selling in the same currency. Option: the right of a contract without the obligation to fulfill it. Exchange currencies, provide financial and heading facilities. Transfer funds, provide credit information of buyer. Provide letters of introduction and letters of credit. Macro-system concerns: protect national interests, maintain national sovereignty, preserve national identity. Marketing mix regulations: local content law product, price ceiling price, distribution territory specifications place, local advertising agency requirements promotion.
