Exporting maple syrup from Canada to India presents both strengths and opportunities, along with challenges and threats. India's growing economy, diverse population, increasing urbanization, and health consciousness has strong market potential for maple syrup. To succeed, targeting the growing middle class and urban consumers, customizing marketing strategies, and positioning maple syrup as a healthier alternative is essential.

However, competition from local sweeteners, regulatory complexities, and exchange rate fluctuations pose risks. Differentiating maple syrup's unique qualities, collaborating with local influencers, and monitoring currency fluctuations can address these challenges. Targeting urban areas, health and wellness shops, and expat communities will help focus on niche markets.

The PESTLE analysis considers political, economic, social, technological, legal, and environmental factors. Favorable trade agreements, tariffs, and understanding Indian cultural preferences are crucial. The growing middle class and health trends offer opportunities, while e-commerce platforms and supply chain management enhance accessibility and quality.

Complying with food regulations, protecting intellectual property, and emphasizing sustainability are essential legal and environmental considerations. Overall, with careful market analysis, adaptation, and strategic planning, exporting maple syrup to India can be a lucrative venture.

Based on the summary given above, solve the following question:

 

Capital Investment & structure: Based on the country information given above, you are now exploring the possibilities of establishing your business in the foreign location through Foreign Direct Investments. Consider product maple syrup and target country as India. 

Decide how much to invest. Determine capital investment in foreign currency, the capital structure and cost of capital. If you are using debt, decide to borrow either from home country or target country based on the projected interest rates in both countries. If you are using your own funds, use average cost of equity in the home country as the required rate of return/discount rate. If there is a mix of debt and equity; find the weighted average cost of capital?