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Q: Should trade or investment be used to enter the foreign market?
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Discuss how companies use foreign exchange?

Companies enter the foreign exchange market to facilitate their regular transactions and or to speculate


What factors determine the demand for a foreign currency?

The demand for a foreign currency is based on how many buyers are in the market. Generally speaking, when a corporation seeks to buy products from another company in a foreign country, that corporation will need to make the purchase in the currency of the aforementioned company. Usually their bank will enter the foreign exchange market on behalf of their client and buy the currency required. The greater the demand for that currency, the higher its price.


Why do companies enter foreign market?

ÒGain access to new customers ÒAchieve lower costs and enhance competitiveness ÒCapitalize on core competencies ÒSpread business risk across wider market base ÒObtain access to valuable natural resources


In a monopoly there is only one seller but other sellers can enter the market?

No; the market has been monopolized.


Why will a producer enter a competitive market?

A producer will enter a competitive market if it believes that it has a better version of other products already competing in a particular market. As an example, for a time, the best selling cola drink was Coca - Cola. It had a mass market of loyal cola customers. It seemed illogical to many businessmen to bring a new cola drink into this market. Pepsi Cola did enter the cola market with a good deal of success. Following that there were several other cola drinks such as Royal Crown Cola that also this now competitive market.

Related questions

Why and how business enter and survive in foreign market?

Why and how business enter to survive in foreign market


How does one enter the investment market?

The best way an individual should enter the investment market would be to invest in a mutual fund on a value fund in order to cheaply get into the market. There are so many ways to invest in stock market. Individual stocks, mutual funds, Index funds, ETF's domestic, foreign etc. As you are a beginner in that field so before take any action, do your research and wait until you are ready to dive in.


What is the difference between FDI and FII?

Portfolio investors: buy stocks or bonds in foreign country's and foreign direct investment: Investment that establishes a lasting interest in another country. SK(APEX) FII is investing into financial markets of India. Majorly secondary market. FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc. 1. FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. 2. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily. 3. Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 4. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 5. FDI flows into the primary market, the FII flows into secondary market. 6. FIIs are short-term investments, the FDI's are long term. FDI means foreign direct investment. FDI outflow means withdrawal of investments from a country is more than new investment, i.e.. more money is taken out than invested at a particular time. Portfolio investors: buy stocks or bonds in foreign country's and foreign investment: is an investment in an enterprise or buisness that operates outside the investors country.


What is the simplest way to enter a foreign market?

There are various ways of entering a foreign market but before finding the easy entry one thing is of vital importance, that is the force that is behind you to go international. The market research will help to carve the answer for this question. for any business establishment one primary driving force is demand and scope of getting adjusted in the foreign market, the secondry and much important thing is the relative competency of your product in terms of quality, price and social acceptance. Once the above mentioned things are carried out, next is to find an easy entry mechanism. Usually the Export of products is the easiest way to enter and exploit the foreign demand. With the trade liberalisation under the aegis of WTO, the world market is now somewhat without trade barriers. In exports there is minimum initial investment and risk as well. There are organisations like Export credit guarantee which covers your risk of loss in foreign trade like insolvency of buyer and loss in transportation. Exporting is the easiest way to enter the foreign market, after holding the clench on the market, you can think of long term investment programmes like licencing, Franchising, joint venture or establishing a fully owned subsidiary.


Discuss how companies use foreign exchange?

Companies enter the foreign exchange market to facilitate their regular transactions and or to speculate


Which certification should LED lighting pass to enter the European market?

CE certification is the certification that the LED lighting should pass to enter the European market.


What do investment banking companies have to offer their customers?

Investment Banking companies are the best manner to enter into the shares market, online trading and equities. They offer good advice, plan out your investment scenarios and help keep your earnings intact.


Why pepsi enter in foreign market?

Because most people think that the US market - I'm assuming when you say 'foreign' you mean 'anything but the US' - is saturated in terms of cola sales. If they want to increase sales, they have to expand to other countries.


Modes of entering international market?

••Direct Exporting•Indirect Exporting•Licensing Arrangement with Foreign Companies•Franchising arrangement with foreign companies•Contract ManufacturingManagement Contracts•Turnkey Projects•Direct Investments•Joint Ventures•Mergers & Acquisitions are the modes to enter the international market:)


When did AFLAC enter the Japanese market?

In 1974 AFLAC had won permission from Japan's government to be one of only two foreign insurance companies in the country.


What factors determine the demand for a foreign currency?

The demand for a foreign currency is based on how many buyers are in the market. Generally speaking, when a corporation seeks to buy products from another company in a foreign country, that corporation will need to make the purchase in the currency of the aforementioned company. Usually their bank will enter the foreign exchange market on behalf of their client and buy the currency required. The greater the demand for that currency, the higher its price.


Where could one go to find information about the currency Forex market?

You can find information about the currency Forex market at the Wikipedia. Once on the page, type "Foreign exchange market" into the search field at the top of the page and press enter to bring up the information.