MGMT 3320 Chapter Notes - Chapter 21: Interest, Spot Contract, Eurocurrency
30 Mar 2017
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Document Summary
International business operations are complex, risky & require special understanding. It is virtually impossible for any country to isolate itself from influence of international developments. Nafta north american free trade agreement opens up opportunities for truly competitive. Canadian enterprises & threatens the viability of others not able to match international levels of efficiency: many canadian companies derive a significant amount of their revenue from worldwide sources. International trade & financial transactions are identified in canada"s current account of international balance of payments: included are merchandise exports/imports, travel, other services, payments on capital investments interest/dividends, & other transfers personal remittances/inheritances. Direct investment in foreign enterprises accounts for bulk of the investment also significant portfolio held in stocks/bonds. Portfolio has become larger as individual canadians seek to diversify holdings internationally. Reasons for capital investment include: higher potential returns, strategic advantages, broader diversification possibilities. Multinational corporations (mnc) can readily relocate because of technology. Some countries offer special tax incentives for foreign firms.
