a) Troop Inc. (US) has decided to build a new factory in India. Explain the benefits of subsequently borrowing in India rather than in the US. b) Explain the options available to Troop Inc. to raise equity in international financial markets and suggest potential advantages from cross-listing on the Indian stock exchange. c) Explain what is meant by a segmented market and an illiquid market and what circumstances may cause them to arise.

a) Troop Inc. (US) has decided to build a new factory in India. Explain the benefits of subsequently borrowing in India rather than in the US. b) Explain the options available to Troop Inc. to raise equity in international financial markets and suggest potential advantages from cross-listing on the Indian stock exchange. c) Explain what is meant by a segmented market and an illiquid market and what circumstances may cause them to arise.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

a) Troop Inc. (US) has decided to build a new factory in India. Explain the benefits of subsequently borrowing in India rather than in the US.
b) Explain the options available to Troop Inc. to raise equity in international financial markets and suggest potential advantages from cross-listing on the Indian stock exchange.
c) Explain what is meant by a segmented market and an illiquid market and what circumstances may cause them to arise.

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Step 4: Segmented market

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Step 5: Illiquid markets

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