Description
For your second assignment, you are to perform some preliminary investigation into the MNC you chose (I chose Coca Cola) by performing a brief survey and creating a portfolio. Start with the history of the organization and provide some brief background into how the organization entered the international stage and how globalization has played a part in the organization’s growth.
When creating the portfolio, you should provide examples of the types of transactions the MNC has made within foreign exchange markets and if there are netting arrangements the organization has made. You should also investigate the purpose of the company’s actions and what this will mean for them in short-term and long-term arrangements with other corporations. For example:
- Did they have to purchase stock of a company
- Will they owe significant monies due to the foreign exchange deal
- Will this affect their cash flow
- Will the appreciation or depreciation of exchange rates affect their transaction
These are just a few questions to get your mind jogging on this topic. Based upon your readings, you should be able to come up with some questions of your own that are more specific to the company you chose, and the types of transactions they make within the forex market. This assignment is important to understanding interactions companies make within international markets and how this affects everyone, down to the end-user. For an example of this, refer to Example 2.5 in Chapter 2 of the textbook.
This Survey and Company Portfolio should be written in at least two pages, double spaced, with Times New Roman 12 pt. font. You should also use appropriate APA style writing and citations.
Explanation & Answer
Attached.
Running head: COCA COLA
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Coca Cola activity in the foreign exchange markets
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COCA COLA
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The Coca-Cola Company
Providing more than five hundred brands in over two-hundred nations, Coca-Cola
Corporation is a total soft drink corporation (Kraus, 2018). The portfolio of the company
includes some of the most valuable brands in the world like ZICO coconut waters, vitamin
waters, Sprite, SmartWater, Simply juice, Powerade sports drink, Minute Maid juices, innocent
juices and smoothies, Honest Tea, Gold Peak coffees and teas, Georgia coffee, Fanta, Del Valle
nectars and juices, Dasani water, Ayataka green teas, and AdeS soy-based beverage in addition
to Coca-Cola brands of the organization. From minimizing sugars in its drinks to getting new and
innovative goods to the industry, Coca-Cola is regularly changing its portfolio. By promoting
recycling and replenishing water, the company is working to minimize its environmental impacts
(Daniels, Raderaugh, & Sullivan, 2004). Coca-Cola brings economic opportunities to the locals
in the whole world by employing over 700,000 workers together with its bottling partners.
What is Coca Cola activity in the foreign exchange markets?
The basic activities in the markets of foreign exchange that Coca-Cola deals with are spot
transaction, forward transaction, and future transaction (Serôdio, McKee, & Stuckler, 2018). The
accounting-based consolidated financial statement changes caused by changes in the exchange
rate are known as spot transaction ch...