Analyze how each of the three major dimensions of international finance

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Business

Asked: May 3rd, 2014

Question Description

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.
You must select a publicly traded company and a country the company is NOT currently operating in. Select a company that you like or you are interested in.
Where to find a list of publicly traded companies:
http://www.investorguide.com/stock-list.php
http://www.forbes.com/lists/2006/18/United_States_Rank_1.html
Select a new international market and a country this company currently has not explored and should consider.

Write a 6-8 page paper in which you:

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.
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.
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.
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.
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.
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.

20140430151015itb400_a1_template.doc

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Running head: MNC EXPANSION 1 Assignment 1: Multinational Corporation Expansion First Name Last Name Strayer University ITB400 Prof. Andrea Banto May 4, 2014 MNC EXPANSION 2 Assignment 1: Multinational Corporation Expansion Introduction In this section, you must provide a brief overview of the selected company and the selected country. You must select a publicly traded company and a country the company is NOT currently operating in. Select a company that you like or you are interested in. Where to find a list of publicly traded companies: http://www.investorguide.com/stock-list.php http://www.forbes.com/lists/2006/18/United_States_Rank_1.html PLEASE REMOVE THE TEXT IN RED THROUGHOUT THE PAPER AND REPLACE WITH THE REQUIRED INFORMATION. !! 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. • Foreign Exchange and political risk • Market imperfections (various barriers) • Expanded opportunity set (companies can operate anywhere in the world, etc.) You should address each of these dimensions in a separate paragraph. Use subheadings for each category. Start each paragraph with an indent. Explore Chapter 1 to get you started. 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. • First, identify and list the economic trends in the chosen market. Discuss each. MNC EXPANSION 3 • Discuss the impact of globalization in the chosen market. • Specify which of the emerging factors identified has the potential for disruption that can affect your operations. Review Chapter 1 to help you address this question. 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. • Identify if the country had a fixed or flexible exchange system. • Discuss how the monetary system you identified will affect your MNC. • Explain the possible implications or drawback of the existing system. Please address the items above in separate paragraphs. Review Chapter 2 to help you address this question. 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. • Explain how the balance of payments will support the management of your MNC • Explain how the deficits and surpluses found within the country can affect your operations. Address the items above in separate paragraphs. Explore Chapter 3 to help you address this question. 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. MNC EXPANSION • Explain the impact of the foreign exchange market on your company • Identify the key foreign market participants • Provide specific recommendations of key financing opportunities for your MNC 4 Address the items above in separate paragraphs. Explore Chapter 5 to help you address this question. MNC EXPANSION 5 References Be sure to cite all your sources; provide at least three (3) qualified sources (i.e., peer-reviewed journals, government, or a professional organization Website). Note: Wikipedia and other Websites do not quality as academic resources Here are examples of references (please deleted and replace with yours) Bezzina, C., & Testa, S. (2005, June). Establishing schools as professional learning communities: Perspective from Malta. European Journal of Teacher Education, 28(2), 141-150. Retrieved from Academic Search Complete database. doi: 10.1080/02619760500093156 DuFour, R. (2004, May). What is a “professional learning community”? Educational Leadership, 61(8), 6-11. Retrieved from http://pdonline.ascd.org/pd_online/secondary_reading/el200405_dufour.html Greene, T. S. (2001, June). Schools as “learning organizations.” Available from ProQuest Dissertations and Theses database. (UMI No. AAI9994152) Herbert, K. S., Murphy, K. M., Ramos, M. A., Vaden-Kiernan, M., & Buttram, J. L. (2006). SEDL’s Working systematically model: Final report. Southwest Educational Development Lab. Retrieved from http://www.sedl.org/cgibin/pdfexit.cgi?url=http://www.sedl.org/ws/pdfs/WS-final-report.pdf Hord, S. M. (1997). Professional learning communities: What are they and why are they important? Issues . . . About Change, 6(1). Retrieved from http://www.sedl.org/change/issues/issues61.html)