International Business Finance Finance Articles | March 2 Justin Upton Angels Jersey , 2006 Many firms are interested in investing and seeking finance from foreign sources and exporting goods and services to foreign countries.
Many firms are interested in investing and seeking finance from foreign sources and exporting goods and services to foreign countries. Overseas involvement of firms is increasing, and this trend is expected to continue. This has been stimulated by a variety of forces. First is the change in the international monetary system from a fairly predictable system of exchange to a flexible and volatile system of exchange. Second is, emergence of new institutions and markets, particularly the Eurocurrency markets, and a greater need for international financial intermediation.
In 1971, the US dollar was unlinked from gold or allowed to ?float?. This brought about a dramatic change in the international monetary system. The system of fixed exchange rates where devaluations and revaluations occurred only very rarely, gave way to a system of floating exchange rates.
The distinguishing characteristics of international business finance are multiple currencies, differential taxation and barriers to financial flows. Of these, the multiple currency factor and the attendant issue of exchange rates has received considerable attention, particularly in recent years. An exchange rate represents the relationship between two currencies.
The procedure for evaluating a foreign investment in international business finance consists of identification of cash flows, choice of an appropriate discount rate and determination of net present value. Foreign investments generally involve higher risk, which arises from factor like changes in currency value, discriminatory treatment of a foreign company and threat of expropriation. Risk stemming from fluctuations in exchange rate looms constantly on the horizon of foreign investment. In addition, a foreign investment is subject to discriminatory treatment and selective control in various forms motivated mainly by political considerations. Finally, the threat of expropriation without adequate compensation may exist, particularly in countries where radical nationalistic sentiments are strong. In view of the higher risk associated with foreign investment, a firm contemplating foreign investment would naturally expect a higher rate of return.
Industrial Wax Market Growth with Global Industry Analysis to 2025
by Infinium · May 31, 2019
Our latest research report entitled Industrial Wax Market (by type (fossil-based, synthetic based, and bio-based), application (candles, food and beverage, packaging, coatings and polishes, hot-melt adhesives, tires and rubber, cosmetics and personal care, and others)) provides complete and deep insights into the market dynamics and growth of industrial wax. Latest information on market risks, industry chain structure industrial wax cost structure and opportunities are offered in this report. The past, present and forecast market information will lead to investment feasibility by studying the essential industrial wax growth factors. According to the report, the global industrial wax market is projected to grow at a CAGR of 4.1% over the forecast period of 2019-2025.
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Market Insight
Industrial wax is a type of organic compound, which is soft at room temperature. Industrial wax is insoluble in the water but can be dissolved in an organic, non-polar solvent medium. Industrial wax is a good source of coating agents; which help to protect the self-life of different food products as fruits, tablets. Further, it is very helpful ingredients in the fertilizer industry, where it is used as anti-caking agents. The industrial wax has a different type on the basis of their source. These are obtained from plants, animals and as a byproduct of petroleum. Industrial wax is mainly obtained from petroleum sources.
Industrial wax has several applications- candle manufacturing, waterproofing agents, crayons, friction reducing agents, and coating agents. Additionally, it has several applications in other industries-agriculture, food, rubber, electrical appliances, pharmaceuticals, and cosmetics, matches box manufacturing industry, fabric, and paper industry. It is used as anti-caking agents to ease the dosing, handling, and transportation of fertilizers. It is used as coating agents for several food products in the food industry as cheese, citrus fruits. In the rubber industry, it is used to protect the tire from ozonization, chipping and cracking. In the electrical industry, it is used as insulating agents to cover electronic nodes and appliances wirings. Furthermore, it is used in the pharmaceutical and cosmetics industry as a coating agent to protect the surface of the tablet. In the matchbox and firework industry, it is used to regulate their burning. Owing to its unique properties its demand is increasing day by day in every industry.
Asia-Pacific is the leading market of the industrial wax, due to the increasing industrial application of industrial wax as coating agents in fertilizer, electronic & electrical and food industry. Additionally, the growing demand for a different type of cosmetic and pharmaceutical products is helping to boost the demand for industrial wax in this region. China is the leading country in the Asia-Pacific region in terms of consumption of industrial wax products. Europe is the second largest market after the Asia-Pacific in industrial wax market.