claeys@vlerick.be ABSTRACT This paper aims at exploring the problems experienced by SMEs in gaining access to debt and equity finance for FDI projects. We develop several hypotheses why SMEs are expected to face severe financing constraints for foreign investments and provide an empirical analysis of these issues for a sample of 33 Belgian SMEs. The market of FDI finance for SME is found to be subject to considerable capital market imperfections‚ which hinders small firms in their internationalization
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adequate operating capital. Once in Madagascar the issues with which he must deal are numerous‚ beginning from the traffic‚ weather‚ energy‚ infrastructure‚ etc. But when we speak for a foreign market the most important issues are: Entry barriers‚ the political and economical stabilization‚ inflation‚ currency‚ foreign competition‚ legislation‚ the different culture‚ and the religion. The best method to do the market analysis is the market screening‚ which has five stages and includes all what I mentioned
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Today‚ the economic boom and liberalization in China provides a great opportunity for the foreign companies who want to shift the competition from individual countries to a global level. However‚ enter this huge market with what kind of entry mode‚ remain inconclusive. The choice of entry mode into the Chinese market for Icebreaker has a major impact on the success of a firm’s international operations. Not only the company will explore a huge potential in China‚ but also require a big input from
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under consideration while planning to launch its very first retail outlet in China. The decision to expand your business across borders can be quite a crucial one. According to (Ghemawat 2001) “companies routinely exaggerate the attractiveness of foreign markets‚ which can lead to expensive mistakes.” Additionally‚ one must also critically analyze its competitors in the potential market which they seek to enter. * Competition faced by Argos Currently‚ Argos is one of UK’s leading merchandise
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Management Journal‚ 16‚ 637-655. Bowman‚ E. H. (1982). ‘Risk seeking by troubled firms’‚ Sloan Management Review‚ 23‚ 33-42. Caves‚ R. E. (1971). ‘International corporations: The industrial economics of foreign investment’‚ Economica‚ 38‚ 1-27. Caves‚ R. E. (1974). ‘Causes of direct investment: Foreign firms’ shares in Canadian and United Kingdom manufacturing industries’‚ Review of Economics and Statistics‚ 56‚ 279-293. Caves‚ R. E. (1996). Multinational Enterprise and Economic Analysis (Second Edition)
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most educated leave their country for greater opportunities or rewards elsewhere. 6.Financial liberalization is difficult to implement emerging nations are unable to float their currencies if they wish to attract foreign capital because exchange rate volatility would reduce foreign investment inflows. 7.Globalization has made it more difficult to ensure safety and stability. As Countries have less control than ever before over the flow of people‚ communicable diseases‚ pollution‚ drugs‚ arms‚ hazardous
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companies to engage in international business. The common reasons are: • • • • • Leverage of their core-competency Seek new market Obtain strategic resource Hedge against business cycle Be ahead of the competitors Once a firm decides to enter a foreign market‚ it must then determine the best mode of entry. Depending on the level of control that the company wishes to have over its operations and the level of risk that it is willing to take‚ there are several different modes of entry. • Exporting
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Introduction Multi National Corporation engages in domestic and foreign product development. Sometimes the host country has a product (labor‚ ingredient‚ part‚ etc) that is rare or less costly than producing it in the home country; therefore establishing a Multinational Corporation is a win-win for the host country as far as supply‚ demand‚ labor and cost. Many corporations currently engage in Multinational Enterprise and are successful in their efforts. Having businesses that are active in MNC
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Landscape (IML) 2013. “More than 29.8 crore‚ about 54 per cent‚ of these device owners are in rural areas as compared to 25.6 crore in cities and towns‚" added Mr. Mrutyunjay‚ Co-founder‚ Juxt. The telecommunications industry attracted foreign direct investments (FDI) worth US$ 12‚866 million during April 2000 to June 2013‚ an increase of 7 per cent to the total FDI inflows‚ according to data published by Department of Industrial Policy and Promotion (DIPP). Moreover‚ the cumulative revenue of
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countries also have able to build on foreign investment and expertise 3. Consumer savings‚ Globalization of trade in services allows consumers a wider choice of lower prices‚ better quality goods and services 4. Faster innovation‚ The exchanges between the countries‚ information can promote technology innovation faster. 5. Greater transparency and predictability‚ Legally binding guarantee‚ allows companies in the international trade and investment in a stable condition. 6. Technology
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