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A regional bank has decided to open an office overseas for serving those businesses that are expanding internationally. Choose a country with a large financial center that you believe would be helpful to your customer base.
Discuss some of the challenges you may face in this new environment. ?What are the cultural, ethnic, social, and educational characteristics?
Describe the political and legal systems.
How much does the government intervene in the private sector? How will that affect your financial institution?
What type of economic system does it have? ?What is the history of that economic system?
How is the country involved in international trade? ?How does the government get involved in trade issues?
Will that help or hurt your financial institution?
Will your presence in this country be helpful in your attempts to invest in other developing countries?
Is this country involved in any regional integration efforts? How so?
Why did you choose this location for your bank?
As a manager, what would be your overall assessment about whether you want to pursue opening an office there? ?Are the financial risks worth taking?
Will it be beneficial to all of the stakeholders?
If you decide to pursue this, what type of presence do you think would be best suited to your objectives?
How should the plant be financed?
Should they hedge foreign exchange or something else? Explain.
Identify 3 foreign exchange instruments you would recommend?
What, if any, government regulations that would affect earnings and cash flow should they be aware of?
Include the need to be aware of inflation and interest rates and how it affects exchange rates.
Keep in mind that the country that the plant is in does not necessarily have to be where the financing is done.
Preview Container content
1. Introduction 3
2. Regional Bank and its Expansion 4
3. Challenges involved
3.1. Cultural 5
3.2. Ethnic 5
3.3. Social 5
3.4. Educational 6
4. Political & Legal Systems
4.1. Government Intervention 6
4.2. Affect on the institution 7
5. Economic Systems & its History 8
6. Assessment 9
7. Conclusion 10
8. References 11
The following paper talks about how a regional bank can establish its office overseas for serving those businesses that are expanding their offices internationally. The country, which is selected as the financial sector is the city of Singapore that ultimately progressed to be the number one in the world. It is now one of the richest places (Peebles and Wilson, 1996). The competitive edge that it has over other cities and places is really remarkable. The paper also explains how the companies and organisations handle different challenges that the country poses for the establishment of a new business or expansion of the same.
Singapore has managed to reach the position it is at today with a lot of determination, planning and economic strategies that can be employed by any business to be at the top. This is why it takes a proper check at what the businesses and potential new establishments have. To emerge as the heart of the economy of Asia, Singapore had to face numerous challenges and that is why the terms and conditions this city has along with its legal and social aspects are very intricate (Mathieson and Roldos, 2001).