INTB 2200 Lecture Notes - Lecture 1: Cash Flow, Fire Sale, Capital Control
27 Jul 2018
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Document Summary
Wire and cable (infrastructure) developing country (e. g. nigeria, mexico, venezuela) will need it. Nigerian lawyer who is minority joint venture partner. Cash flow problem (high inflation takes too much time to get paid by the customer which is govt also there are capital transfer restrictions) Main problem: to be or not to be in nigeria. Cash flow problems and payment is delayed, high inflation. Expats don"t like to stay in nigeria. Future growth opportunity for our business (developing country) People need things and if they can pay good. Moving will need to reinvest in a new country. Moving will mean we will have to make a sale of our assets fire sale means we will get less than what our assets are worth. Competition is low, if we leave our competitor will fill the demand. Margins can go up to 20% roi.
