ABSTRACT
This chapter focuses on the environments, principles, techniques and factors involved in international leasing analysis. It analyses some general principles, rules, and requirements for strategy-planning and decision-making in international leasing. The chapter explains the factors that influence international leasing strategies and decisions, including cash flows, discount rates, risk factors, foreign exchange rates and risks, inflation, taxes and other factors. The environments to be considered in international leasing, from a lessor's point of view, refer to a potential lessee's country environments including economic, political, cultural, legal, accounting, competitive, technological and other environments. Goals of a financial decision have traditionally attracted a large number of possible candidates including maximisation of profits, maximisation of sales, minimisation of costs, survival of a firm, achieving a target market share. Investors can improve risk versus return performance by holding an internationally diversified portfolio of securities as compared with a domestically diversified portfolio.
