The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.

There are different implications of running a company that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:

1. Would you seek to acquire a company within the European Union or outside of it? Why?
2. Describe the advantages and disadvantages of the choice you made.
3. Describe the advantages and disadvantages inherent in the option you did not choose.
4. Explain why an MNC may invest funds in a financial market outside its own country.
5. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

Please submit your assignment.

Grading Rubric:
Grading Criteria

Percentage

Deliverable requirements addressed; understanding of material and writer’s message and intent are clear

35%

Scholarly research which supports writer’s position properly acknowledged and cited direct quotations may not exceed 10% of the word count of the body of the assignment deliverable (excluded title page, abstract or table of contents if used, tables, exhibits, appendices, and reference page(s). Inclusion of plagiarized content will not be tolerated and may result in adverse academic consequences.

20%

Critical thinking: position is well justified; logical flow; examples 

20%

Structure: includes introduction and conclusion; proper paragraph format and reads as a polished, academic paper or professional presentation, as appropriate for the required assignment deliverable

10%

Mechanical – no spelling, grammatical or punctuation errors

10%

APA – deliverable is cited properly according to the APA Publication Manual (6th Ed.)

5%

Assignment Objectives

Interpret the operation of the international financial system, its current state, and challenges for the future.