Global Strategy for London Forfaiting
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The paper looks at the London Forfaiting Company PLC, a financial services company, specifically in the area of forfaiting, a flexible method of financing international trade transactions. The paper discusses the company's globalization strategy and relates that it has increased its business in some areas while entangling it in some of the economic problems facing certain markets. The paper suggests that the sale of London Forfaiting may be the only way out of its current situation.
From the Paper:"London Forfaiting acts as an intermediary when western exporters trade with countries which have problems in gaining access to hard currency. For instance, the company pays UK firms cash for promissory notes which are then sold to international banks. The company also arranges the notes which allow non Western companies to buy goods from UK companies. London Forfaiting has a strong position in this market and is also involved in transferable loans, an activity which involves lower margins ("London Forfaiting" 66).
"London Forfaiting Company in 1997 showed a 51 per cent increase in turnover, combined with a 61 per cent rise in profits from its forfaiting operations, suggesting a continued rise in the popularity of forfait techniques with exporters in the developed world. A forfaiter based in the London offices of a major U.S. investment bank stated, "To an European exporter three years ago, a 10 year deal in the Philippines would have been considered exotic, but you can do Kazakhstan and you can talk Ukraine now" ("Forfaiting market expands into new territories")."
Cite this Case Study:
Global Strategy for London Forfaiting (2003, November 12) Retrieved July 08, 2020, from https://www.academon.com/case-study/global-strategy-for-london-forfaiting-37922/
"Global Strategy for London Forfaiting" 12 November 2003. Web. 08 July. 2020. <https://www.academon.com/case-study/global-strategy-for-london-forfaiting-37922/>