Question

Discuss the sources from which a company can raise funds in foreign currency

Answer 1

Answer:

I hope it will help you.

Explanation:

International Financing is also known as International Macroeconomics as it deals with finance on a global level. There are various sources for organizations to raise funds. To raise funds internationally is one of them. With economies and the operations of the business organizations going global, Indian companies have an access to funds in the global capital market.

Answer 2

The vital sources from which a company can raise funds in foreign currency are ADR's, GDR's, FCCB's, ECB's, equity shares, debentures, and borrowings.

Step by step explanation:

• Companies usually raise funds by issuing equity shares, preference shares, debentures and borrowings from the public.

• They are all convertible and redeemable. They are treated as FDI's (Foreign Direct Investment).

• ADR's (American Depository Receipt), GDR's (Global Depository Receipt), and FCCB'S (Foreign Currency Convertible Bonds) are all treated under FDI.

• Companies are allowed to raise funds through ADR's, GDR's and FCCB's.

• ECB's (External Commercial Borrowings) helps in raising debt in foreign countries.