International Finance 2 min read
FDI – Basic Requirements
As a minimum requirement, a firm will have to keep itself abreast of global trends in its industry. From a…
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Author: Prabhu TL.
Prabhu TL is a SenseCentral contributor covering digital products, entrepreneurship, and scalable online business systems. He focuses on turning ideas into repeatable processes—validation, positioning, marketing, and execution. His writing is known for simple frameworks, clear checklists, and real-world examples. When he’s not writing, he’s usually building new digital assets and experimenting with growth channels.
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Why is FDI Important?
FDI is an important source of externally derived finance that offers countries with limited amounts of capital get finance beyond…
International Finance 2 min read
FDI and its Types
Strategically, FDI comes in three types − ● Horizontal − In case of horizontal FDI, the company does all the same activities abroad as…
International Finance 1 min read
FDI – Definition
FDI, in its classic definition, is termed as a company of one nation putting up a physical investment into building…
International Finance 1 min read
Balance of Payments
It is important to measure the performance of an economy. Balance of Payment (BOP) is one way to do so. It shows the…
International Finance 1 min read
Foreign Direct Investment
Foreign direct investment (FDI) is an important factor in acquiring investments and grow the local market with foreign finances when…
International Finance 2 min read
Techniques to Reduce Economic Exposure
International firms can use five techniques to reduce their economic exposure − ● Technique 1 − A company can reduce its manufacturing costs by…
International Finance 3 min read
Economic Exposure – A Practical Example
Suppose you own and rent out a condominium in Europe. A property manager recruited by you can vary the rent,…
International Finance 2 min read
Regression Equation
Analysts can measure economic exposure by using a simple regression equation, shown in Equation 1. P = α + β.S + ε (1) Suppose, the United…
International Finance 1 min read
International Finance – Economic Exposure
Economic exposure is the toughest to manage because it requires ascertaining future exchange rates. However, economists and investors can take…
International Finance 2 min read
Hedging Translation Exposure
The above exhibit indicates that there is still enough translation exposure with changes in the exchange rate of the Mexican…
International Finance 2 min read
Translation Exposure – An Exhibit
The following exhibit shows the transaction exposure report for Cornellia Corporation and its two affiliates. Items that produce transaction exposure…