Bertos Manufacturing Corporation Case

Bertos Manufacturing Corporation Case

According to the case, Bertos Financial Services Inc. is seeking to expand abroad through direct investments in foreign markets in order to support its parent company's sales, Bertos Manufacturing Corporation. BFSI has three foreign subsidiaries in Canada, Mexico and United Kingdom. Ten countries were selected in order to determine which ones would be most suitable for the immediate establishment of a new BFSI subsidiary. Thus, Victoria in charge of this project has to identify the key criteria and considerations that need to be taken into account in evaluating BFSI entry in the proposed foreign markets.

In order to determine the five best countries, Victoria should make a financial system analysis for each country. This should include a historical overview of the countries financial system, present monetary laws and regulations and types of financial institutions operating in the country. She should make a list and a description of all the financial institutions (domestic and foreign) present in the country including assets, deposits, total liabilities, capital, retained earnings, loan charge offs, net income, and also the different services offered by the institutions. Moreover, Victoria should include in her analysis the banking structures and regulations, tax considerations, and customer profile. Furthermore, important elements such as the country's balance of payment, balance of trade, principal sources of exports, imports, investments, and fund transfers, and foreign reserves should be considered. Then, Victoria should also describe in her country's analysis the current situation of the country's currency, risks that financial institutions in the selected country face such as currency, political, and regulatory. Indeed Victoria should consider the exposition of the firm's FDI to political risk in the different countries proposed. Indeed, some political events can undermine the economic viability and performance of the firm, such as expropriation, governance risk and blocked funds. In addition, the analysis should discuss the eventual risk of money laundering and terrorist financing, and highlight important financial institutions failures and scandals in the country.

Consequently, the board has established the need for an addition of finance companies of select foreign countries that would be instrumental in maximizing corporate investment returns. By this she would have to research and provide a thorough analysis that would bring profitable return to the venture. Victoria Pernarella should choose Argentina, Turkey, China, Brazil and Switzerland to be the next target for the BFSI subsidiaries. These countries would be the most suitable because they entail the most sound banking systems that would help the companies' foreign market investments.

Argentina would be one of the top prospects because of