If you run a business and plan to expand it abroad, sooner or later you will need additional funding. The searching and gaining of additional funds in the international capital market are considered a normal practice in the context of globalization and is one of the important functions of international financial management.

1.In your own words, explain why a company would consider borrowing money in the international market. What are the advantages associated with this?

2.Consider the following options for borrowing funds: getting international loans, issuing bonds. What are the benefits of each form of gaining funds? Which one would you prefer?

3.Provide more details on your chosen form of borrowing funds:

If you prefer getting an international loan, give at least three examples of institutions that provide them and describe the conditions of the loans.

If bonds are your choice, explain whether you would like to issue foreign bonds or Eurobonds. What will be the face value of the bonds? What about the rate?