The globalization enables companies a rapid expansion of their international businesses. In particular, the former export champion Germany gets higher profits from increased worldwide business activities and sales opportunities. However, while the international expansion reaches daily new records, the risks for international business remain and should be considered seriously. The risks of international business are from different types and include economic, political, manufacturing, currency, and transport risks. For export transactions risk analysis of buyer and buyer's country plays an important role. Based on a thorough risk analysis, terms of payment and terms of delivery in the contract of sale could be developed. Moreover, hedging instruments like advance payment, letter of credit, payment guarantee from a bank, government Euler Hermes coverage, transport insurance and others arrangements could be used for international financing.
The object of this study is to learn and understand about international finance and risk management through evaluation of risks and opportunities for international expansion of a medium sized company. Thereby, country risks of Lebanon, Russia and Turkey are appraised using SWOT analysis. Furthermore, differences between political and commercial risks are studied. Various terms, e.g. INCOTERMS, Payment terms, Collection, and Letter of credit, are explained and compared. In addition, pros and cons of repaying of company's loan in Euro or Swiss Francs are assessed. Finally, the possibilities of money transfer inside Europe and to the US are illustrated. Besides the theoretical reflection concrete recommendations are given for the company.
Table of Contents
- Executive Summary
- Introduction
- Main Part
- Country analysis using SWOT
- Differences between commercial risks and political risks
- INCOTERMS
- Definition and application
- INCOTERMS groups
- Recommendation for the company
- Payment terms
- Collection
- Comparison between Collections and Letter of credits
- Recommendation to favourite payment for the company
- Long-term loan in EURO (EUR) or SWISS FRANCS (CHF)
- Money transfer inside Europe and to the US
- Conclusion
Objectives and Key Themes
This study analyzes the risks and opportunities associated with the international expansion of a medium-sized company into Lebanon, Russia, and Turkey. It aims to provide a comprehensive risk assessment using SWOT analysis, comparing political and commercial risks. The study also explores various international finance topics, including INCOTERMS, payment terms, and methods of collection, ultimately offering recommendations for the company's financial strategies.
- Risk assessment of international expansion
- Comparison of political and commercial risks
- Analysis of international payment methods and terms
- Evaluation of financing options (loans in EUR or CHF)
- Strategies for international money transfers
Chapter Summaries
Introduction: This introductory chapter likely sets the stage for the subsequent analysis of international expansion risks and opportunities for a medium-sized company. It probably provides background information on the importance of internationalization for businesses and introduces the specific focus on Lebanon, Russia, and Turkey. The introduction might also outline the methodology used throughout the study, such as the SWOT analysis and the examination of various financial instruments.
Main Part: This section forms the core of the study, delving into detailed analyses of various aspects of international finance relevant to the chosen expansion targets. It probably begins with a SWOT analysis of each country, highlighting their unique political, economic, and commercial strengths, weaknesses, opportunities, and threats. The subsequent sections likely explore different types of risks—commercial and political—distinguishing them and evaluating their potential impact on the company’s operations. A significant portion is dedicated to exploring INCOTERMS, explaining their application and providing tailored recommendations based on the company's specific situation and the markets it intends to operate within. The analysis extends to payment terms, methods of collection, and the comparison of these, leading to recommendations for the company's optimal payment strategy. The study probably also compares the advantages and disadvantages of taking out a long-term loan in Euros versus Swiss Francs. Finally, the section details the procedures and considerations involved in transferring money within Europe and to the United States.
Keywords
International finance, risk management, SWOT analysis, international expansion, Lebanon, Russia, Turkey, INCOTERMS, payment terms, collection, letter of credit, currency risk, Euro, Swiss Franc, money transfer, political risk, commercial risk.
Frequently Asked Questions: Comprehensive Language Preview of International Expansion
What is the main topic of this document?
This document is a comprehensive language preview providing an overview of a study analyzing the risks and opportunities associated with the international expansion of a medium-sized company into Lebanon, Russia, and Turkey. It focuses on international finance aspects, including risk assessment, payment methods, and financing options.
What are the key themes explored in the study?
Key themes include risk assessment of international expansion (using SWOT analysis), comparison of political and commercial risks, analysis of international payment methods and terms (including INCOTERMS), evaluation of financing options (loans in EUR or CHF), and strategies for international money transfers.
What specific countries are analyzed in the study?
The study specifically analyzes the risks and opportunities associated with expanding into Lebanon, Russia, and Turkey.
What methodologies are used in the study?
The study employs SWOT analysis for assessing country-specific risks and opportunities. It also examines various international finance topics, including INCOTERMS, different payment methods, and financing options.
What aspects of international finance are covered?
The study covers a wide range of international finance topics, including: INCOTERMS (definition, application, and recommendations for the company), payment terms, collection methods (including a comparison with letters of credit), recommendations for optimal payment strategies, long-term loan options in EUR or CHF, and international money transfer procedures (within Europe and to the US).
What are the key findings or recommendations (as previewed)?
The preview doesn't explicitly state key findings, but it indicates the study will provide recommendations for the company's financial strategies regarding payment methods, financing, and international money transfers. Specific recommendations regarding INCOTERMS usage are also anticipated.
What is the structure of the document?
The document is structured with an Executive Summary, Introduction, Main Part (including detailed analyses of SWOT, risks, INCOTERMS, payment terms, collection, loans, and money transfers), and Conclusion. A table of contents and chapter summaries are also included.
What are the keywords associated with this study?
Keywords include: International finance, risk management, SWOT analysis, international expansion, Lebanon, Russia, Turkey, INCOTERMS, payment terms, collection, letter of credit, currency risk, Euro, Swiss Franc, money transfer, political risk, commercial risk.
- Quote paper
- Dr. Khanh Pham-Gia (Author), 2009, International Finance and Risk Management, Munich, GRIN Verlag, https://www.grin.com/document/132274
