In 1837 James Gamble and William Procter each contributed $3,596 to start their company as a soap and candle manufacturer in Cincinnati, Ohio. The two soon were looking into the future and invested in some land near the Miani-Erie Canal for a possible factory. As the city grew so did Procter & Gamble, by 1848 they showed an annual profit of $26,000. In 1878 Ivory soap was introducted and proved to be a success. This boosted their sales and helped to sell other products such as candles, soaps, lard oils, and glycerin. Then in 1913 Procter & Gamble began selling direcly to retailers in the New York area and soon after expanded nationally. By 1937 P&G has 11 manufacturing plants in the United States and 5 in foreign countries. They produced sales of $230 million. By the late 1970's P&G had really developed. They had 10 operating divisions and marketed their products mainly in grocery stores and drugstores for use in the home. Procter and Gamble wanted to provide their customer's demands for quality and value with the best marketing execution.
             Over the year's Procter and Gamble expanded their manufacturing companies to many countries. By 1990 they had expanded and were producing in 46 countries. They were expanding globally and needed to examine their costs, and risks for funding the companies. According to the article Procter & Gamble found four options for sourcing their funds.
             • A subsidiary independently borrow the necessary capital in its country of operation and in local currency
             • A subsidiary independently borrow in the United States with U.S. dollars
             • Have the parent company guarantee the borrowings of the subsidiary in the United States
             • Directly invest equity from the parent company into the subsidiary
             All of the approaches had negative and positive takes. For the well developed countries it was thought that the best option would be to borrow in local currency wit...