Off and Away!
Well, it's been quite some time since I've interacted with the outsideworld in any capacity - but that's all expected given that I've since
moved out of Edmonton and launched into a strange new direction. For
those of you not so in the know, Tiara and I are heading off to
Tunisia very shortly - she with the promise of microfinance work (see
her other blog http://microfind.blogspot.com for more info into what
that's all about), and me with the aim of following, supporting and
teaching English.
What that has meant, not surprisingly, is that our house full of stuff
was reduced down to a pair of suitcases each (and some stuff hiding in
storage with our parents); that we've been absolute stressballs for
the last month or two; that we became hermits even as we tried to say
all our good-byes; and that we're about to head off on adventure.
We're excited and apprehensive, and charging ahead
caution-to-the-wind, or something like that. Actually, there's been a
lot of caution happening, preparations seem endless, but probably less
than we aught to be doing. Oh well :-)
Wish us luck.
posted by Loren @ 11:48 p.m.
3 Comments:
Hi you two: here's my fantabulous fangorious essay that you helped me with: just thought that I'd pass it along enjoy and thanks a million!
Q: WHAT ARE THE FINANCIAL IMPLICATIONS FOR A COMPANY EXPANDING THEIR BUSINESS ABROAD?
When a corporation is expanding business abroad, the international environment may be initially little understood or altogether unknown. The financial implications for international expansion are therefore both the expected costs and gains which are foreseeable under normal expansion circumstances and the foreign market and governmental activities which could result in strong and unforeseeable financial results.
When planning for an international expansion, while the company should be able to gauge some financial activities with certainty, there will be an increased risk due to the unknown associated with the international expansion. To start, a company should be able to estimate the perceived benefits of their expansion; reduced costs of production or increased market share, for example, can be evaluated with some degree a certainty. Derived for the process of creating these benefits are also several other predictable financial implications. The building of infrastructure, logistics and technological systems are examples financial activities that can be fairly accurately assessed in planning. Depending on the scope of the project, systems may additionally need modification in order to comply with the international expansion; the re-engineering of management information and/or technological systems, therefore, may also be a predictable financial implication for international expansion. In addition to these internal company oriented financial implications, international trade policy both in the country of origin and in the foreign country could create a set of predictable barriers and/or incentives for the company’s international expansion. As international trade policies are usually not variable during short periods of time, a company should be able to attribute the costs/benefits of these policies into their initial planning with a degree of reliability. While there are many fairly predictable financial facets in an international expansion, there remain external and foreign factors that will incur some uncertainty. Foreign economics, governance and politics will provide a varying level of risk dependant on the nature of the foreign country and of the company’s business expansion. Currency fluctuations, interest and inflation rates, for example, are economic factors that could change quickly and strongly affect the expanding company. In governance, while a company should have researched the foreign policies and laws they will inherently be less knowledgeable in a foreign environment and may be unfamiliar with business or legal nuances. This could prove disastrous, for example, in foreign contract negotiations and/or foreign contract maintenance. Finally and most strongly, if the foreign country is unstable politically, there could be obvious and enormous financial repercussions which could result in anything from a lost contract to a complete loss of all of the company’s foreign investment.
In conclusion, the perceived benefits, the building and modification of systems, international trade policies and foreign risk are the financial implications which could arise for a company expanding their business abroad. While it is important for a company to carefully consider all of these implications before expansion, in our complex global community financial flexibility and continual market awareness are the key to a successful international business.
Yes, ok I was just reading my essay again: a few dozen errors...computers make me jumpy. Let me know if you find irregularities too...irregularities being a nice word for crap...ahem Ciao
Ok folks, here's yet ANOTHER version: yay! of my essay. I've had a few more people go over it, so I think that this one's much better. I just keep on truckin'.
When a corporation is expanding business abroad, the international environment may be initially little understood or altogether unknown. The financial implications for international expansion are therefore both the expected costs and gains which are foreseeable under normal expansion circumstances and the foreign market and governmental activities which could result in strong and unforeseeable financial results.
While a company should be able to gauge some financial activities with certainty, there will be an increased risk due to the unknown associated with the international expansion. To start, a company should be able to estimate the perceived benefits of their expansion; reduced costs of production or increased market share, for example, can be evaluated with some degree of certainty. Also, there are several other predictable financial implications that are derived from the process of creating these benefits. The building of infrastructure, logistics and technological systems are examples of financial activities that can be fairly accurately assessed in planning. Depending on the scope of the project, these systems may additionally need modification in order to comply with the international expansion; the re-engineering of management information and/or technological systems, therefore, may also be a predictable financial implication for international expansion. In addition to these internal company oriented financial implications, international trade policy both in the country of origin and in the foreign country could create a set of predictable barriers and/or incentives for the company’s expansion abroad. As international trade policies are usually not variable during short periods of time, a company should be able to attribute the costs/benefits of these policies into their initial planning with some degree of reliability. While there are many fairly predictable financial factors in an international expansion, there remain external and foreign factors that will incur some uncertainty. Foreign economics, governance and politics will provide a varying level of risk, dependent upon the nature of the foreign country and of the company’s business expansion. Currency fluctuations, interest and inflation rates, for example, are economic factors that could change quickly, and strongly affect the expanding company. In governance, while a company should have researched the foreign policies and laws they will inherently be less knowledgeable in a foreign environment and may be unfamiliar with business or legal nuances. This could prove disastrous, for example, in foreign contract negotiations and/or foreign contract maintenance. Finally and most strongly, if the foreign country is unstable politically, there could be obvious and enormous financial repercussions which could result in anything from a lost contract to a complete loss of all of the company’s foreign investment.
In conclusion, the perceived benefits, the building and modification of systems, international trade policies and foreign risk are the primary financial implications which could arise for a company expanding their business abroad. While it is important for a company to carefully consider all of these implications before expansion, in our complex global community, financial flexibility and continual market awareness are the keys to a successful international business.
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