ITB 4 W7

Question 1=

Please respond to the following:

Use the Internet to research a U.S.-based publicly-traded company and the exchange rate of a foreign country in which that company does not currently conduct business. Briefly describe the company and the country.

 How would you evaluate general exchange rate risks for the company if looking to expand in the selected country? Specific examples are required. Cite your sources.

Question 2 (comment )

My choice of company is PBR . Petroleo Brazileiro the company is very know for Petrobras.

Petrobras is a public Brazilian multinational. The headquarter is located in Rio de Janeiro . It the largest  company we have in the  country considerate one of the biggest in Latin America, employing thousands of people and doing business with 24 countries.  This corporation was founded in 1953(britannica.com).  It monopolized the oil in Brazil for years. Today most of the oil in Brazil comes from Petobras.  Petrobras is a world leader in development of advanced technology from deep-water and ultra-deep water oil production (britannica.com). Today the situation of this company in Brazil due to the actual government is not good, many fraud, scandals and corruption destroy one of the biggest company in Brazil .

Brazil is the 5th biggest country in the world. In 2009 the economy in Brazil was emerging very fast. This year the country is in deplorable condition.

Through my research Petrobras does not do business with Peru. Peru in 2105 has its economy booming. The country is a leader in mineral,  accounting for 60 percent of the country's exports.

The problem in Peru is the same throughout Central America and South America, corruption and political system, which are the two major risk for new investors. The candidates in Latin America are the ones that represent the major risk for the nation. Some of them are so radicals and communists.  Peru presents a major concern in social conflicts over natural resources.

Although the economic movement of the country is positive,  Peru GDP is low(reuters.com). Peru presents bad infrastructure, some of them will never change regarding the geographic of the country and its environment and historical value of the old civilizations (Incas). Population suffers from violence and live in poverty.

 http://www.reuters.com/article/2011/03/28/us-latam-summit-peru-idUSTRE72R1WM20110328

http://www.britannica.com/EBchecked/topic/454196/Petrobras

Question 3=

Please respond to the following:

•     You are ready to expand your portfolio and invest internationally. What steps would you take to diversify the portfolio?   Please provide a link and discuss recent information published in the news related to international portfolio investments. Briefly describe the event. Cite your sources.

Question 4=

Please respond to the following:

You are ready to expand your portfolio and invest internationally.  What steps would you take to diversify the portfolio?  Please provide a link and discuss recent information published in the news related to international portfolio investments.  Briefly describe the event.  Cite your sources.

While most people diversify their portfolio with stocks, bonds, mutual funds, and commodities, I thought it would be exciting to think outside the norm for more creative options.  While researching the topic, I discovered recently published information about Crowdfunding where one platform provides its members with access to a diverse portfolio of startup investments.  Further, this platform enables accredited investors to participate in investments in the most promising startups in global locations where thousands of people invest over $60 million in 46 exciting companies in its firm 16 months of operations.  As part of Crowdfunding,  I would invest in Cogobuy Group (Stock Code: 400.HK) an e-commerce service platform for the enterprise procurement of the electronics manufacturing industry in China.  Cogobuy achieved robust growth as a result of increasing numbers of new customers specifically from online transaction customers; 2.2% from blue chip customers and 97.8% from SME customers, an increase of 91.6% as compared to March, 2014.  Cogobuy’s total revenue of RMB1,906.4 million which represents an increase of 40.8% YoY.  According to Hurst, (2015), there are  key phrases of building our full services platform: First, targeting the market of more than 3 million electronic manufacturers, we will continue to expand our customer base and maintain low new customer acquisition cost.  Cogobuy’s supply chain financing business is a data driven Internet financing service mainly for SMEs underserved by commercial banks in China.  The organization feels this new addition to their services will emerge as an important growth driver for improved profits. 

With Cogobuy’s positive financial returns, I feel this would be a great investment to ensure great returns.  I also feel that Crowdfunding provides a way to diversify one’s portfolio aside from the normal vehicles such as stocks, bonds, mutual funds, and commodities. 

Reference:

Hurst, S., (May 18, 2015), Cogobuy Unveils First Quarter Unaudited Operation Results. Crowdfund Insider.  Retrieved fromhttp://www.crowdfundinsider.com/2015/05/67965-cogobuy-unveils-first-quarter-unaudited-operation-results/

N/A, Retrieved May 18, 2015 from http://blog.ourcrowd.com/index.php/the-most-lucrative-investments-youve-never-considered/?utm_source=Dianomi&utm_medium=CPC&utm_content=isr-luc&utm_campaign=Dianomi2