Assessing Factors in Germany That Will Affect the Demand for Your Product

Identify the factors that can affect the balance of trade between the United States and

Germany. Explain any two main factors that may affect the demand for your product. $4$

marks

Based on Germany's profile and risks, take a decision to establish business in the foreign

location through Foreign Direct Investment $($i$.$e$.$ Would you establish a joint venture,

acquire a company there or establish a subsidiary$)-$ Justify your answer. $3$ marks

For FDI $($Foreign Direct Investment$),$ how would you raise capital $($debt or equity$).$ You

need to find information on their existing debt and equity ratios in assets to justify your

answer. You can find this information on $10-K$ form of the company. $($Since this is a

comprehensive document, read about debt and equity only and leave the rest$)5$

marksCompany: Tesla, Inc.

Product: Electric vehicles $($EVs$)$

Country for export: Germany

Assessing Factors in Germany That Will Affect the Demand for Your Product

$1.$ Identify the factors that can affect the balance of trade between the United States and Germany. Explain any two main factors that may affect the demand for your product. $4$ marks

$2.$ Based on Germany$$s profile and risks, take a decision to establish business in the foreign location through Foreign Direct Investment $($i$.$e$.$ Would you establish a joint venture, acquire a company there or establish a subsidiary$)$ Justify your answer. $3$ marks

$3.$ For FDI $($Foreign Direct Investment$),$ how would you raise capital $($debt or equity$).$ You need to find information on their existing debt and equity ratios in assets to justify your answer. You can find this information on $10$ K form of the company. $($Since this is a comprehensive document, read about debt and equity only and leave the rest$)5$ marks