Question
Your company, headquartered in Portugal, is considering making a major FDI in Myanmar.This planned acquisition will be your company's first investment in Myanmar.Despite the exciting
Your company, headquartered in Portugal, is considering making a major FDI in Myanmar.This planned acquisition will be your company's first investment in Myanmar.Despite the exciting potential investment, there are some concerns in the company regarding differing financial systems, potential agency problems, and political risks present in Myanmar especially in relation to your headquarters' country. Your group is tasked with answering the following questions in a 15-minute (3 minutes per group member) presentation in your week 11 or week 12 tutorials (each group member must present 3 minutes):
1.What are the primary mechanisms of corporate governance in Portugal?Are they required by legal mandate or adopted at the discretion of the company?
2.What are the primary mechanisms of corporate governance in Myanmar? Are they required by legal mandate or adopted at the discretion of the company?
3.How would you compare the effectiveness of these mechanisms?Would it be possible to use some of the mechanisms of Portugal in Myanmar?
4.Given the tariff policies and exchange rate systems of both countries, what type of exchange risk would this investment face?How would you recommend hedging this risk?
5.How would you compare the financial development of both countries?What issues may these differences cause?
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