THE P&G COMPANY: MEXICO 1991
Table of contents
Introduction?????????????????????.??????????????????????.2
History of P&G???????????????..???????????????????????????3
Global financing at P&G????????..?????????????????????????????4
Mexico???????????????????????????????????????????????5
P&G in Mexico??????????????????????????????????????????..6
Case questions
1. As Dick Duffel, which financing option do you recommend and why?.................................8
2. What importance does Mexico tax law play?...................................................................12
3. Is there a link between financing risk and foreign exchange risk? Business risk?...............12
Bibliography???????????????????????????????????????????14
Introduction
Dick Duffel, associate director of P&G Mexico suggests, in order to increase manufacturing facilities in Mexico, to borrow an average of $ 55 million of dollars for over three years. As the borrowing would represent the 20% of the investment needed, the total investment required would be $ 750 millions of dollars.
All investment proposal would have to pass through the board of Cincinnati and therefore Mr. Duffel was asked to prepare a complete written analysis to be presented to the board, considering the Mexican economic stability.
In order to be able to evaluate the situation, there may be presented some notes:
- History of P&G with highlighting of expansion and financial information
- Indication of the financing attitude at P&G
- Outline of the Mexican market
- Presentation of P&G Mexico
The information giv ...