International financial markets IP 1 Assignment

International financial markets IP 1 - Assignment ExampleThis report is an attempt to look into the differences that exist in two countries where Acme Corporation is considering establishing a Greenfield investment. These two countries atomic number 18 the United Kingdom and Nigeria. Well, it must be remembered that these two countries are totally different in some(prenominal) aspects that can really affect the decision of the corporation to venture into their markets. The UK is a member of the European management and is generally a developed economy with good and well managed sectors. On the other hand, Nigeria is one of the largest economies in Africa with a very large consumer population that drives economic growth. Trade and economic policies The UK prractices an open economy where flock liberalization and competition for free barter is highly cherished and encouraged. Any business is able to exchange freely and invest competitively without any unnecessary restrictions fro m the government. One of the greatest concerns of the government here is to increase the opportunities that exist for international business in order to economically benefit the bucolic. Well, this is after the recognition that change enables countries to specialize in activities that enable them to fully explore and exploit their resources and strengths. This open economy system has enabled the UK to catch high economic growth range over the years especially in the post-war era. The policy has besides strengthened the UKs consumer markert as corporations and businesses strive to stay competitive amid the challenges and realities of this age (Smith, 2010). Over the years the UK has been know as a haven of very favorable trade policies that enabled many of its firms go multinational. Even though this attribute has slightly been lost over the years courtesy of very high cheer rates and the global financial meltdown, the government through the Bank of England has incessantly be en trying to bring down the interest rates and increase the money supply in the banking system with a view of restoring economic stability. heretofore it must be remembered that the trade policies in the UK are generally investor friendly and may not be much different from the US case. Nigeria is a developing economy grappling with the economic challenges that affect just about countries in this category. However, it is a booming economy driven by its productive oil sector united with a very high population that creates a lot of demand for consumer goods and services. Even though the national government of Nigeria recognizes the benefits of trade liberalization and the need to open up the market for international competition, challenges have endlessly been realized. Like in any other developing country, the infant industries have to be protected from the rigidly competition posed by foreign corporations. There also exists the common assumption that free trade can only exist un der an ideal economic system which is always impossibility. Nigerian trade policies are driven under the auspices of the Structural Adjustment Program (SAP) that seeks to restore the economy of the country after several decades of economic instability that bedeviled the country (Olaloku, 2007). As such, the government has been trying to encourage outstanding inflows into the country through foreign direct investments. This is in a bid to reduce the countrys dependence on the oil sector by creating other sources of revenue. However, the federal gover