finance

Assignment 1: Multinational Corporation Expansion

Imagine that you are a senior business manager for a U.S.-based multinational company. You have been informed by your supervisor that your Company needs to consider expanding into a new international market to seek new opportunities.

To get started, you must decide the following:

• Select a publicly-traded Multinational Corporation (MNC) with which you are familiar.

• Select a new international market and a country this company currently has not explored and should consider.

Write a paper in which you:

1. Analyze how each of the three major dimensions of international finance can affect your possible venture of your MNC in your chosen new international market, including potential opportunities and risks for each dimension.

2. Examine the economic trends and impact of globalization in the chosen market and determine which of those emerging factors have potential for disruption that could affect operations.

3. Assess whether the country you have chosen maintains a fixed or a flexible exchange system and discuss how this monetary system will affect your MNC. Provide a strong rational for possible implications and drawbacks of the existing system.

4. Determine how the balance of payments will support the management of your MNC and explain how deficits and surpluses found within the country you have chosen can positively or negatively affect operations of your company.

5. Analyze how the foreign exchange market your company is considering entering can impact

international business operations. Examine key foreign market participants and provide

recommendations of possible key financing opportunities for your MNC.

6. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Assignment 2: International Market Expansion

Using the same multinational company that was chosen in the Assignment 1 prepare an analysis that will examine key strategic risks and a financial strategy for your supervisor to consider for possible expansion into this new international market.

Write a paper in which you:

1. Examine possible risks of foreign currency exposure for your company and prepare a strategy for how each of these risks can be managed. Please be specific and consider all possible implications to your company.

2. Evaluate the basic functions of the international banking system and financial market (such as bonds, equity, and money markets) and provide a plan for using these financial markets to finance your global operations.

3. Present a financial strategy to support long-term financing of operations for possible expansion of your MNC (taking into consideration portfolio management, capital budgeting and foreign direct investment decisions).

4. Provide final recommendations based on both your findings and your initial assessment of opportunities and risks on the three dimensions of international finance, economic trends of the country, impact of globalization, and the monetary system.

5. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

PART B

question 1

“Balance of Payments” Please respond to the following:

· Compare and contrast the continuous current account deficits of the U.S. with the continuous current account surpluses of Japan. Discuss the likely consequences for both countries if the deficit and surplus roles are reversed in the next 10 years.

· Analyze the possible strengths and weaknesses of SDRs versus the dollar, and determine if the SDR should or could replace the U.S. dollar as the main global reserve currency.

Question 2

“The Market for Foreign Exchange” Please respond to the following:

· Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in many instances for hedging purposes. Discuss how a bank may mitigate the currency exposure it has created for itself by accommodating the clients’ forward transaction.

· Create a list of three best practices for reading spot market quotations, deriving cross-rate quotations, and leveraging the concept of triangular arbitrage as a means of ensuring market efficiency.