Firms use several methods to conduct international business.The most common methods are these:
- International trade
- Joint ventures
- Acquisitions of existing operations
- Establishing new foreign subsidiaries
More from this Section
Shading is a request to narrow, or close up, the spread or margin between foreign currency buying and selling rates of exchange.
- Cash Discount
Cash Discount is a discount given to buyers for cash rather than credit purchase.
- Financial Lease
To manage the necessary asset for long-term by lease without costing cash is called Financial Lease or Capital lease.
Revaluation is an upward change in the official parity of an exchange rate from that which it was previously set.
- Certificate of Deposit (CD)
Certificate of Deposit (CD) refers to a negotiable receipt issued by a bank for funds deposited for a period of time. CDs can be purchased ...
- Purchase Agreements (REPOs)
REPOs or repurchase agreements are a form of non-deposit sources of bank’s fund. The main purpose is to use of low risk bank assets ...
- Commercial risk
Commercial risk— in banking, the likelihood that a foreign debtor will be unable to repay its debts because of business (as distinct from political) events.