Multinational Finance Essay

565 words - 3 pages

International finance
Final Exam: Essay questions
Fall 2015

Instructions: Choose five questions from the list of the questions below and give it
a thoughtful answer. Please formulate your answers in your own words and give
references when needed. You may look up in textbooks in the library or check
relevant websites to answer. Each question is to be answered fully but concisely,
each answer should not be exceeding 200 words per question.
The deadline to hand in the essay is January 7th, 2016

1. Describe the characteristics of a Multinational Corporation, any
advantages/drawbacks, and give examples. What reasons does the author of
your text give for becoming a multinational corporation?
2. Discuss the Exchange Rate, Market, and Legal/Political risks that foreign
investors confront.
3. Explain the theory of Comparative ...view middle of the document...

5. What are the advantages to being in the EU and adopting the Euro (two
separate issues)? What are the chief drawbacks (EU and Euro, economic
and political)? Why hasn’t England, Norway, Sweden, or Switzerland adopted
the Euro? Which are EU members, and why did the others not join the EU?
6. Imagine that you are a trader working for a New York bank. The spot
exchange rate against the Canadian $ is US $0.9968 and the one-month and
one-year forward rates are respectively US $0.9985 and US $1.0166. Twelvemonth interest rates in the USA and Canada may be taken as 6.45% and
4.46% respectively.
(a)
What is the forward premium as an annual percentage?
(b)
Which currency is at a premium? Why?

7. Explain what PPP is, what it assumes, why these assumptions means it may
not hold in the real world, and when it tends to hold and why. Discuss crucial
reasons it will tend to break down. Give evidence that it tends to work (see
book).
8. Explain what the Real Exchange Rate is, and how it is different from PPP.
What is the implication for the Real Exchange Rate if PPP holds? Explain
why.
9. Explain the difference between transaction, translation, and economic risk
(asset exposure and operating exposure). Which is easiest to hedge and
why?
10. As Treasurer of a major company you are approached by the Finance
Director of one of your UK-based subsidiaries which is in the business of
supplying a service to customers worldwide. The subsidiary is about to submit
a quote for a major contract to be awarded in three months’ time. The
customer is a Saudi company and the major competitors are based in
Germany and the US. The subsidiary is anxious to secure the business, but
needs to ensure some, if minimal, level of profit.
Make recommendations outlining the currency considerations in pricing and
risk evaluation and the methods of mitigating the risk.

Other assignments on Multinational Finance

Internatinal Essay

3743 words - 15 pages Eun & Resnick 4e CHAPTER 1 Globalization and the Multinational Firm Questions in the test bank follow the order of the chapter outline: What’s Special about International Finance? Foreign Exchange and Political Risks Market Imperfections Expanded Opportunity Set Goals for International Financial Management Globalization of the World Economy: Major Trends Emergence of Globalized Financial Markets

Fifi Essay

1727 words - 7 pages Case Report Title of case analysis : MULTINATIONAL GOODFOOD Name Time Managers Date 14/09/2015 Summary Multinational Good Food is look The problem (a concise one-sentence statement (seven to nine words). Must contain “doer”.) A) People Name, job title, age Number of years experience, if relevant Experience or influence Additional facts, if relevant Name, job title, age Number of years experience, if relevant

Psychology

513 words - 3 pages succeed. Attending the university will prepare me for the actual situations I will face in the corporate world. After which, my experience being an employee would then give me further experience and knowledge to help me in building my own firm. I am overly impressed with the quality education offered in your MBA program at Pepperdine University. I have completed several finance classes that have given me the understanding, insight and

Why Don We Sell The Club

3186 words - 13 pages wondering why all the previous GCs and management did not do anything about balancing the operation budget. They therefore requested Mr. Lee to look into the matter, and entrusted him to come up with a balance operation budget for the coming year, with the help of his Finance Subcommittee. The Members of the Finance Subcommittee The Chairman – Mr. Lee; the elected Honorary Treasurer of the Club; recently retired finance director of a multinational

Globalization Theory

1715 words - 7 pages Theories of International Trade & the Multinational Enterprise Theories of International Trade & the Multinational Enterprise International trade is the exchange of goods and services across borders. Trade provides people with greater selection of goods and services to choose from. The importance of international trade to a nation economic welfare and development suggest that economies need to export goods and services in order

Essay

1153 words - 5 pages Ratio | 4.15 | 1.35 | (NKE) (NKE) Stock Chart for the last 3 months Stock Chart for the last 3 months Performance Evaluation (Feb, 2012 -Jan, 2014) Performance Evaluation (Feb, 2012 -Jan, 2014) Key Statistics (Vs Major Competitor) Key Statistics (Vs Major Competitor) Introduction NIKE, Inc. is an American multinational company that is involved in the athletic industry. The company focuses on the branding, marketing, designing, and

Coca Cola

3511 words - 15 pages Coca Cola Report Introduction Coca Cola is a multinational company. The Coca Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverages. Coca Cola is Private Limited Company (Ltd). A Ltd company is a type of business ownership which determines many operations of how the business is run. In this report I will identify how the business is affected by ICT and how the company is run. This will include

Miss

5774 words - 24 pages emerging markets are surfacing into centers of innovation. These innovations relate to low-cost healthcare devices, wind power, micro finance, electric cars and many more. The role of emerging markets is transforming from being low-end consumer markets to innovation centers. Multinational companies used to launch new products in the developed world and later on sell the stripped-down version of products to developing parts of the world. But now this

Strategic Management

1595 words - 7 pages Chapter 1: The Nature of Strategic Management: We can define Strategic Management as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Strategic Management focuses on integrating management, marketing, finance/accounting, production/operation, research and development (R&D) and computer information systems to achieve organizational success. Strategic

India On The Move

828 words - 4 pages corporate level as finance departments endeavour to keep their reporting accurate and up to date. The policy of Maximum Retail Price for goods helps keep prices stable. Under a national employment programme, rural citizens are guaranteed 100 days of employment by the state and this is enforced through a number of local bodies.
Symbols of the growing wealth of the population are ubiquitous. I saw dozens of billboards heralding the arrival of the

Acceptance Of Islamic Accounting

951 words - 4 pages (Pollard and Samers, 2007). To this situation also contributed the so called “Islamic windows”, which represent separate divisions of the multinational banks devoted to marketing Shari’ah - compliant financial products. This became a trend which spread rapidly into countries where large Islamic communities lived, such as the United Kingdom. Conventional banks such as HSBC and Lloyds offered Islamic banking products and a series of financial

Similar Documents

Unknown Essay

255 words - 2 pages Introduction 1.1 Briefly describe of company Amway is a one of the America multinational direct-selling company selling most variety of product such as heath, beauty and home care needs. 2.1 The General Environment 2.1.1Pestles Environmental factor are 2.1.2 Application to the company 2.2 The competitive environment 2.2.1 Poter 5 forces 2.2.2Applicable to the company 2.3 Internal Analysis 2.3.1 Value Chain Activities The Real

Imba Essay

797 words - 4 pages course descriptions shown below are only for courses offered by UNCW and the Cameron School of Business. See each alliance school for their course offerings. IMB 531. Cases in International Finance (1-2) This course will focus on international financial management cases. Cases will build on topics of international monetary systems, international investment decisions, portfolio diversifications, multinational capital structure, and foreign exchange

Cite An Example From Recent Events That Highlights The Flattening Of The World As Described By Friedman

413 words - 2 pages Thomas L. Friedman’s book, The World Is Flat, demonstrates how barriers of competition are impacted through globalization in today’s business world. As companies and economies of all sizes are finding, the modernization and globalization of supply chains, production operations through multinational networks and availability of streamlined IT resources have transformed the competitive landscape into a level playing field. Additionally, firms

Mr Praveen Essay

862 words - 4 pages . It is precisely this flexibility that I plan to draw on while at NAME and beyond, by taking advantage of (and contributing to) the school's strong international alumni network. Above all, a NAME MBA will help me strengthen both the finance knowledge and the entrepreneurial skills necessary to secure a position as an environmental specialist in a multinational American-based firm. Such a position, in turn, will prepare me to accomplish my long