Question

Why some firms go abroad to raise capital? Term paper structure or outline.

Answer 1

Some firms choose to go Global in order of raising capital because-

1. They want to gain from the exchange rate differences between the two countries.

2. They want to to get an international recognition as there are raising fund abroad.

3. Improve sales-it can also help them improve their sales globally.

4. Improve profits-it can also help them improve their profits as they can get funding at low cost of capital .

5 . Short term Security and long term security-raising funds globally offers them with security.

6. Increase innovation-it can help them to raise through innovative style of funding.

7. Economies of scale-it can provide them with an economy of scale as it can lead to cost cutting

8. Competitive edge-it can also provide with the competitive edge with its peers.

9. Government incentives-there are various foreign government which offer many incentive for raising capital in the country.