INTERNATIONAL FINANCE Assignment XXXXXXXXXXDue Friday January 29 ,2021 You are asked to analyse the following information and advise how you would carry out the following investment taking into...

8
International Finance
Contents
(A) Investment Structure:    3
(B) Most Appropriate Financing Option:    4
(C) Best Funding Mix    5
(C) Political and Country Risk Factors:    5
(D) Overcoming Risk in Case of Delay:    6
(E) Other Risk Factors:    7
References:    8
(A) Investment Structure:
There are many investment structures that can be used by organizations for the purpose of expanding their business internationally. In order to enter in the global market it is important to analyze all the factors like the most suitable business strategy and the timing of entrance in the international market ("How to enter a foreign market | Workspace", 2021). Some of the market entry methods that are used for entering the global market are:
1. Exporting: It involves selling of goods and services to another country or to the traders of another country. It is considered as one of the easiest and convenient ways to enter in the international market as there is no need to setup and production unit or retail stores for the purpose of selling goods and services in another country. If we talk about the cost then the only cost which need to be taken care of while exporting is the transportation cost of exporting goods and services from one country to another.
2. Licensing: It can be defined as usage of property by a company in the country in which expansion is to be done. There is a certain amount of fee which is required to be paid by the licensee for the purpose of using the property. The property normally is the trademark or the patent and the technology or the techniques of production. This is the cheapest manner to expand the business globally that too with very high returns.
3. Franchising: In franchising, the intellectual property rights of a company are sold by the company to the franchisee. If we talk about the setup of the franchisee, then it has to be in accordance with the specified rules whether it’s related to interior or the processes used in manufacturing.
4. Foreign Direct Investment: it is concerned with investing in the foreign market directly. It is not necessary to invest in a new venture. Foreign direct investment can be done by acquiring a company that already exists. There is a lot of cost involved in foreign direct investment as an adequate amount of capital is needed to set up the premises, for the purpose of technology development and employing new staff.
5. Wholly owned subsidiaries: it can be considered as similar to foreign direct investment in some aspects. Instead of investing in a new company, the money is invested in a company of which 100% shares are owned by the parent company.
6. International stores opening: one more method that can be used for international expansion is setting up or opening retail stores at certain places which can yield good revenue depending upon the market conditions. This method pr strategy is often considered as internal expansion.
For the purpose of expanding operations in Vietnam through the retail operations, the most suitable methods for expansion would be franchising, subsidiaries or opening of the international stores. After considering the pros and cons of all three alternatives it would be best to open the retail stores in Vietnam. Opening of the international stores would lead to increase in the market share and promotion of the brand would be done leading to creation of a good image in the international market. This would further help in expansion of the business in other areas of the world. In an initial stage of expansion it would be easy and profitable to open retail stores in different areas to promote business and increase profitability.
(B) Most Appropriate Financing Option:
In order to set an operation in Vietnam, the best method that can be adopted for financing would be through equity financing. Equity financing can be defined as selling the shares of the company to certain investors for the purpose of raising capital for the use of funds in the business. It is considered as one of the safest way to raise funds for any business, especially in the initial...