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The importance of international capital structure is a strategic balance of both equity and debt. The capital structure of a company can determine how a company operations, forecasts, and future opportunities to expand. The importance of international capital structure is the claims on the actual companies from both equity and debt owners (Brigham & Ehrhardt, 2017). There are many risks that can be identified when working with cash, credit, and inventory management.
Working with cash can be beneficial for a company to have capital and not have to get as much approval for a purchase. Working with credit can be restrictive on what the purchase is for and there is only so much credit a company can take on. Working with inventory management is to understand if all items are accounted for or if there is a loss on any products(Brigham & Ehrhardt, 2017). Overall the capital structure and risks are many when working with an international company.
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial management: Theory & Practice, (15th ed.). Boston