You are asked to analyse the following information and advise how you would carry out the

following investment taking into account various aspects of the international finance as well as

using knowledge gained from other subjects in your degree such as Corporate Finance.

Your firm has been successful in retail operations in Australia and is looking to expand its

operations and is currently considering commencing operations in Vietnam which is encouraging

firms commencing operations in its country. It is expected that it will cost $50million Aussie

dollars to start operations in Vietnam which includes purchasing property to operate from, fitting

out the stores, buying necessary inventory and equipment and machinery. Your company intends

to commence operations as a retailer in Vietnam six months after you purchase properties and the

above $50 million Aussie dollars budget is only expected to last for the six months.

Questions:

(A) Based on your knowledge from this and previous subjects advise which type of

company structure/investment structure would be most suitable to carry out this investment?

(B) Explain, giving reasons, what would be the best /most appropriate forms of financing to use

for its purpose of setting up an operation in Vietnam?