Lalala
INTRODUCTION
Tim Berhad which is listed on BURSA MALAYSIA want to export the company product, steel rod to three nation which is JAPAN, CAMBODIA and Vietnam. Since the company don’t have any experience on doing international trade, we will we discussing about the risk might be face by Tim Berhad when conducting the International Trade activities. We will discussing the risk that face by Tim Berhad and how the company going to solve the problem. The main challenge factor on doing international trade is economic growth, inflation rate, interest rate and exchange rate. We will discussing each of them in each question. In addition, Tim Berhad will also do FPI, which is direct portfolio investment in Thailand and Vietnam. We will further discussing the bond, stock market in question 2. Tim berhad will diversification its business to food industry which is invest in Australia biscuit factory. We will further discussing on how the tim berhad allocate the fund and how was the return.
Q1
Method of Payment
Tim Berhad started to expand its business through engage in international trade. This is due to the home country market are becoming more saturated compare to previous time. Company will export the steel rod for construction to Japan, Vietnam and Cambodia. The payment method of international trade is a crucial point when conducting the international business. It decided how the importer to pay the money to the exporter which is in different nation. Exporter and importer have to face challenge on conducting international trade by facing credit risk, foreign exchange risk, political risk and other risk. Those risk will affected the payment between importer and exporter, therefore importer and exporter have to be caution when choose the method of payment. Since the TIM BERHAD are new in doing international trade and it no have any experience with doing international trade, therefore using prepayment method is more suitable.(Madura 2013) Tim are no experience with
Tim Berhad which is listed on BURSA MALAYSIA want to export the company product, steel rod to three nation which is JAPAN, CAMBODIA and Vietnam. Since the company don’t have any experience on doing international trade, we will we discussing about the risk might be face by Tim Berhad when conducting the International Trade activities. We will discussing the risk that face by Tim Berhad and how the company going to solve the problem. The main challenge factor on doing international trade is economic growth, inflation rate, interest rate and exchange rate. We will discussing each of them in each question. In addition, Tim Berhad will also do FPI, which is direct portfolio investment in Thailand and Vietnam. We will further discussing the bond, stock market in question 2. Tim berhad will diversification its business to food industry which is invest in Australia biscuit factory. We will further discussing on how the tim berhad allocate the fund and how was the return.
Q1
Method of Payment
Tim Berhad started to expand its business through engage in international trade. This is due to the home country market are becoming more saturated compare to previous time. Company will export the steel rod for construction to Japan, Vietnam and Cambodia. The payment method of international trade is a crucial point when conducting the international business. It decided how the importer to pay the money to the exporter which is in different nation. Exporter and importer have to face challenge on conducting international trade by facing credit risk, foreign exchange risk, political risk and other risk. Those risk will affected the payment between importer and exporter, therefore importer and exporter have to be caution when choose the method of payment. Since the TIM BERHAD are new in doing international trade and it no have any experience with doing international trade, therefore using prepayment method is more suitable.(Madura 2013) Tim are no experience with