Description
Multinational Financial Management" Please respond to the following:
- * From the e-Activity, determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for your rationale.
- * From the scenario, select two (2) potential international markets in which
TFC may wish to do business. Compare the currency markets of the two (2)
countries you have chosen with that of the U.S. dollar. Based on currency
considerations only, recommend whether or not TFC should expand to the
international markets that you have chosen.
- 2 references needed in APA format
Explanation & Answer
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MULTINATIONAL FINANCIAL MANAGEMENT
Multinational financial management
Name
Institution
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MULTINATIONAL FINANCIAL MANAGEMENT
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DISCUSSION 1
A multinational corporation is an organization that does business in two or more
countries around the world although decision making may be centralized to the mother
country (Holm et al. 2015). A multinational cooperation may borrow funds from countries
with high-interest rates because of many reasons. One of the reasons is the GDP of that
country. An organization is attracted to countries that have high GDP because it shows that
the country’s economy is doing well, and the country has a lot of funds to lend out. The next
reason is the frequency at which foreign rates fluctuate and this will include the inflation rates
of that country. Borrowing from Switzerland m...