International Finance Assignment Help
As the world of business environment becomes increasingly global, multinational corporations (MNCs) are establishing their production and marketing operations in foreign countries. Consequently, MNCs face a variety of challenges. One of the challenges faced by MNCs in foreign markets is fluctuations in currency exchange rates. Movements in exchange rates can cause instability in profit margins and significant losses to a MNCs bottom line. Thus, exchange rate risk management comprises an integral part of MNC decision-making about foreign currency exposure. Measuring and managing exchange rate risk exposure are important functions in reducing MNCs vulnerability from major exchange rate movements. In order to manage currency exchange rate risks, a MNC often uses financial instruments or currency derivatives.
In the light of the above statements you are required to:
- Select two companies out of the companies listed below.
- Apple INC, 2.Samsung, 3.Panasonic, 4.Sony INC, 5.Philips, 6.Nikon, 7.Fujifilm, 8.LG,
- Nintendo, 10.Hewlett-Packard, 11.Siemens, 12.Intel, 13.Ericsson.
- Provide a brief introduction on the internationalization strategy of the two companies you selected (use theories such as comparative advantage, product life cycle and market imperfection for your discussion appropriately)
- Identify four countries with which the selected MNCs conduct their business. Explain briefly how those countries political, economic and financial environment have affected the international operations of those companies
- Provide a brief review about socio-political, economic and financial environment of the countries you selected. Use the published country risk reports.
- Identify major sources of risk (FX risk, political risk etc.) and the extent of such risk on overall business activities of two companies you selected.
- Identify and explain the types of exchange rate risks management strategies used by each company.
- Identify and explain the strategies used by those companies to face the economic and financial crisis in the global financial market.
- Identify the contemporary challenges (such as transfer pricing and taxes) faced by business firms which engage in international environment of business. What are the remedies available for such business? Are they ethical? Discuss.
You are required to write an essay highlighting each of the above issues. In your essay, you need to compare and contrast the circumstances which each company face.
General Instruction for the Pair assignment
All sources of information (such as company annual reports, text books, websites with addresses etc.) which you have used to prepare your report should be cited appropriately.
Word limits: 3,000 (Maximum)
Group size: Two
Instructions for Submission:
- The soft copy and the printed copy of the completed report should be submitted on or before 30th November, 2015 (Week 12-Monday)
- The soft copy should be in Ms-Word and should be submitted via TURNITIN. The similarity index page must be attached to your printed copy.
- Assignments submitted without the similarity index will incur a 20% penalty of the marks earned. Every assignment which exceed allowed limit of similarity will be penalized 2% marks for each 10% exceeded. Late assignment will costs one (01) mark per day.
- You will lose all marks allocated to the group assignment if you don’t submit the assignment as required.
The following acts are deemed as academic dishonesty;
- Unauthorized Collaboration
- Falsifying Academic Records
- Misrepresenting Facts (e.g., providing false information to postpone an exam, obtain an extended deadline for an assignment, or even gain an unearned financial benefit)
- Any other acts (or attempted acts) that violate the basic standard of academic integrity. Order Now