Normally When a Firm First Expands Overseas, It May Use

question 36

Essay

Normally when a firm first expands overseas, it may use an international division and later use a different organizational structure. Under what circumstances might such a firm wish to shift back to the use of an international division?

---

Definitions:

Bearer Bonds

Financial securities that are issued as physical certificates and do not record the owner's name, with interest and principal paid to the holder of the certificate.

Transfer Agent

A company or financial institution designated by a corporation to maintain records of investors and account balances, handling issues like stock transfers and dividend payments.

Market Rate Of Interest

The prevailing rate at which interest is paid by borrowers for the use of money that they borrow from lenders.

Maturity Risk

The risk associated with the fixed income instrument reaching its maturity date, affecting the investment's interest rate and return.