Fin630 – Financial Management Theory and Practice

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Submitted By homerlou
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American Intercontinental University
FIN630 – Financial Management Theory and Practice
Unit 1 Individual Project
November 12, 2011

Abstract
This paper will present an analysis of the United Kingdom (U.K.) and the United Arab Emirates (U.A.B.) to determine both suitability and potential in each of the countries for a Greenfield project. This analysis will compare the financial conditions in each country as well as trade policies, currencies and cultural variables which could affect the project. This paper will also include a recommendation to the steering committee of Acme as to which may be the preferred country for the Greenfield project.

Introduction

To begin, I will give the definition of a Greenfield Investment: “A term which describes investment in a manufacturing or production plant in an area where little or no physical infrastructure or facilities exists” (Financial Glossary, n.d). In other words, building or establishing a plant or other type facility where there was nothing previously. The opposite would be considered a Brownfield Investment, which is established in or on existing facilities or grounds. Multinational enterprise Acme, is currently considering expanding their business globally by establishing a Greenfield facility in a foreign country. Foreign countries each have their own unique policies in regards to establishing a business, as well as their own cultural proclivities, currencies and laws. This paper will offer analysis regarding the suitability of the United Kingdom (UK) and the United Arab Emirates (UAE) for the Greenfield project. To further clarify, the UK belongs to the European Union (EU) while the UAE does not participate in the EU.
Comparative Analysis
Both the UK and the UAE contain advanced markets that have continuous development in the considerable market base offered in both countries. Other…...

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