Identify greatest risks that negatively impact investment

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Reference no: EM131157455 , Length: 4

Question: Assignment

Application: International Opportunities

Companies continue to examine whether to open foreign subsidiaries, joint ventures or affiliates.

For example, in 2007, Wal-Mart announced that it is in talks with partner Bharti Enterprises Pvt. about opening retail outlets in India (walmart.com).

Retailer Saks Incorporated announced in 2012 the grand opening of its licensed Saks Fifth Avenue store in Almaty, Kazakhstan (businesswire.com).

Kellogg Firm and Wilmar International Limited also announced in 2010 a 50/50 joint venture between Kellogg and Wilmar for the manufacture, sale, and distribution of cereal and snacks in China.

Wilmar's wholly-owned subsidiary in China, Yihai Kerry Investments Co., Ltd., will participate in the joint venture (kelleggfirm.com).

To prepare for this Assignment, research a firm that has (1) recently opened or is planning to open, a foreign subsidiary, or (2) has entered or is planning to enter into a joint venture with a foreign entity.

Review the reasons that the firm is attempting to enter a foreign market.

In a 2- to 3-page paper, identify the three greatest risks that could negatively impact the investment. These risks could be explicitly identified by the firm in your research, or they could be blind spots that you think the firm does not appear to be anticipating. Then, consider how you would evaluate the risks you have identified and the strategies you would employ to mitigate these risks if you were a senior financial manager at the firm.

•Explain why the firm finds the opportunity to be favorable in the particular country chosen.

•Then explain the three greatest potential risks that could negatively impact the opportunity.

• Finally, explain the strategies you would employ to evaluate and mitigate each of the risks you have identified if you were a financial manager at the firm you have researched. Be sure to be specific in your explanation of the risks and risk mitigation measures.

General Guidance on Assignment Length:Your assignment will typically be 2 to 4 pages (1 to 2 pages if single spaced), excluding a title page and references.

Reference no: EM131157455

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