You are the CFO of a major multinational, headquartered in the USA. Your company wants to build an assembly and distribution plant in Peru. The plant is estimated to cost US$20 million. What are the...

Running Head: INTERNATIONAL ECONOMICS    1
INTERNATIONAL ECONOMICS         2
INTERNATIONAL ECONOMICS
Table of Contents
Expansion to the Eurocurrency Market    3
Benefits of Financing in the Eurocurrency Market    3
Risks of Using the Structure of Financing in the Eurocurrency Market    3
Ways to Mitigating or Minimizing the Identified Risks    4
References    5
Expansion to the Eurocurrency Market
I am the Chief Financial Officer (CFO) of the renowned technology and computer multinational firm, Dell, which is headquartered in the US. Our company has planned to expand its market by producing an assembly and distribution unit in the European country, Peru, with an estimated expense of US$ 20mn.
Benefits of Financing in the Eurocurrency Market
Being the CFO, I have analyzed that the Eurocurrency market is quite beneficial for seeking credits when the finances are low. According to Pilbeam (2018), the establishment of an assembly and distribution unit of a technology based can be an extremely cost-intrinsic venture. This can be even tougher if the market is in some other continent, because the transportation and accessibility of the parts as well as the finished products become more difficult than it would have been in the intercontinental markets.
Therefore,...