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AC308 International/Multinational Management and Accounting Part A Briefing This report will analyse the prospects and the problems for a Multi National Enterprise who proposes to make a Foreign Direct Investment, therefore many factors will need to be considered by the MNE, as this is arguably one of the most important decisions that faces a multinational company (Demirag and Goddard 1994). This is namely because of the large capital outlay over a duration of time, a decision once made that cannot be easily reversed. Company Background British American Tobacco is a large Multi National Enterprise established in 1902 by consolidating two companies American Tobacco co. and the Imperial Tobacco of the UK this was hoped to end an intense trade war, 'Under the agreement, the two companies will not trade in each other's domestic markets and acquire the right to use each other's brands and trade marks in their own territory. Imperial Tobacco's and American...

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