Title: Foreign direct investment options: Bertos Manufacturing Corporation
Authors: Emmanuel N. Roussakis; Anastasios Moysidis
Addresses: Department of Finance and Real Estate, College of Business Administration, Florida International University, 11200 SW 8th Street, Miami, Florida 33199, USA. ' Department of Finance and Real Estate, College of Business Administration, Florida International University, 11200 SW 8th Street, Miami, Florida 33199, USA
Abstract: This case deals with the key considerations when planning an international expansion through direct investment in foreign markets. These considerations must be addressed by a finance company seeking to support the international sales of its parent firm, a US-based multinational enterprise (MNE). The company already operates three foreign subsidiaries in Canada, Mexico (both NAFTA members), and the UK but wishes to increase this network further through entry into additional markets. Ten candidate countries are being considered to determine the five most suitable for entry. A supplementary consideration is the mode of direct investment in the selected markets. Hence the need for a rational decision on where to invest and what form should this investment take.
Keywords: subsidiaries; multinational enterprises; MNEs; transnational activities; foreign direct investment; FDI; greenfield investment; leveraged institutions; wholesale financing; captive finance company; retail instalment contracts; market entry.
DOI: 10.1504/WREMSD.2012.044489
World Review of Entrepreneurship, Management and Sustainable Development, 2012 Vol.8 No.1, pp.92 - 102
Published online: 18 Sep 2014 *
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