Which funding is better, from domestic sources or international sources?

I support your opinion Ms.Suganthi Srinivasan. I would like to prefer funding through domestic source that is always safety.

Domestic Fund Sourcing Id Costlier As Compared To International Sources But The Mobilization Becomes Better For A Nation...

@Vipin Sir I think you misunderstood me

That Debate was about the firms already facing FX risk(Transaction or Economic) if they are hedging or not.

By this debate I am trying to say that going international will create unnecessary risk for a domestic firm. Meaning this is about raising finance.

This as everyone said I agree depends on the nature of Business

But if it is a small scale or a domestic firm

There are 2 reason to select Domestic resource is :

1) you avoid foreign exchange risk

2) getting resource domestically is easy coz the provider has a chance to verify the company

If it is a large scale firm which has a foreign operations then it is better to source the debt from International source or say the same currency where it has operations to create a natural hedge....Finally avoiding unnecessary risk..

THANK YOU SUGANTHI.

TO DAY WE ARE IN A SITUATION WHERE THERE IS AVAILABILITY OF ANY AMOUNT OF FUNDS FOR RIGHT PERSONS,RIGHT COMPANIES AND RIGHT PURPOSE.AS A MATTER OF FACT BANKS AND FI ARE LOOKING OUT FOR PEOPLE WITH GOOD TRACK RECORD OR GENUINE BORROWERS.DOMESTICS FUNDING IS HASSLE FREE UNLIKE INTERNATIONAL FUNDING WITH VARIOUS PROCEDURES,REGULATIONS ETC ETC.

I agree with Suganthi it depends on type of bussiness but domestic is preferable.

domestic sources is safe becuase we can have better knowldge about them and at present situation indian economy is ver storng

I agree with Suganthi.funding decision depends on the nature of business.

Thanks for the referral Ms Suganthi

Funding from domestic source is much easier and less time consuming.  

Hello Natasha, I feel it is better to take funds from domestic sources which will give clear formality to understand better. International source will be difficult to understand the procedure. Further it all depends on the business. 

K Rajagopalan.

I am agree with Suganthi that domestic financing is better than international financing as later comes with string attached which are not in our national interest.India has saving rate of more than 30% which is one of the largest in the world. there is strong need to channelize these savings into investments by developing adequate financial intermediatries.Indian financial sector is under develpoed and less 20% people are covered by mainstream financial channels. another point is that international investment in form of FII lead to volatility in the market when there is crisis in west they pull out their money and this creates a lot of uncertainity.During the global meltdown indian life insurance companies lead by LIC were the largest institutional investors in the market which was the one of the reasons that we were not hit by the crisis to some extent.domestic financing not only provides  funds but also promote financial inclusion which affect over all eonomy of the country.

Funding through domestic is good. Less Risk factor. Cost reduction. Communication wise its very helpful.

domestic funding is much preferable as compared to international funding. because in domestic funding market risk is minimum. for example if we deal with international funding and suppose other countries are dwelled in recession then we too also have to bear loss along with funding sources. so accdording to me if someone is interested in international funding then they should keep themselves updated to global market.

Unless there is forex earnings it is not advisable to seek foreign currency loans. There is also special skill required for managing forex.

It is not advisable to access foreign currency loans unless there is equivalent forex earnings . There is a need for skill to manage forex movements and take timely decisions.