FIN 336: Final Project Presentation Guidelines and Rubric
For multinational businesses, transaction exposure can cause the devaluing of a contract due in a later time period and change the overall profit or loss of a
project. Create a presentation to incorporate the knowledge gained and information presented in the previous research, interview, and milestones to explain
how a company may break into global enterprise by gaining a new contract, whether the organizational structure and business objective play a part in the
company’s entrance to international trade, how transaction and other exposures play a part in the success or failure, types of domestic and international
financing options for the business or project, and the changes or effects of the balance of payments and trade balance between the two countries and how each
may cause fluctuations of interest rates, exchange rates, and the overall cost of the venture. Include an example of purchasing power parity, types of possible
arbitrage, and how this company will decide if the potential profits are worth the risks.
Keep in mind that this is your final project for this course. It should include all concepts covered in this course, extreme detail about historical trade between
China and the United States, and your opinion of what the future may hold between these two countries. Utilize as many details as possible into this project, but
do not copy the same information previously submitted in the course.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final submission will occur in Module Seven.
The final presentation should be a minimum of 10–12 slides in Prezi, video, or other tool, including a title slide and reference slide. The APA style format must be
used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable.
Course Outcomes
In this assignment, you will demonstrate your mastery of the following course outcomes:
Recognize the objectives, risks, and expansion opportunities of multinational corporations
Analyze the tools used for direct and indirect intervention of the foreign exchange market in regard to fluctuating exchange rates
Identify the use of a financial intermediary when utilizing forward contracts, cross exchange rates, swap rates, currency, Euro Credit, and Eurobonds
Assess changes in exchange rates, the effect on an import-dependent country, and how they may be used as an adjustment tool
Explain the difference between transaction and translation exposure
Examine the effective interest rates effect when financing international trade (methods of payment, factoring, short-term bank loans, banker’s
acceptance, forfeiting, countertrade)
Evaluate the cost of capital for multinational corporations and how costs may change or validate the selection of investment projects
Milestones
Milestone One: Balance of Trade
This milestone is submitted in Module Two. Specifically address the following questions:
Explain how trade balance, interest rates, and exchange rates are related, and cite an example of how a rise or fall in one changes the others.
Does a deficit in China or the United States change the overall advantage or disadvantage of trade? Why?
Explore how the cost and quantity of imports and exports, such as electronic equipment, may be challenged by the rise and fall of these rates.
Incorporate the fluctuations of supply and demand into the costs incurred and decide ways management calculates estimations for further product
needs.
Explain the philosophy of “international crowding out,” citing an example of how this may occur, and describe how excessive borrowing in one country
has affected interest rates in the United States.
As an example, China and the United States “borrow” from each other to finance needs by purchasing government-backed securities from the other country.
This practice provides one country with additional funds and also gives the purchasing country more control over interest rates or “borrowing costs” in the
future. How does this influence interest rates in the domestic country and foreign country? Can one country gain control over another financially by continually
financing another country’s debt?
This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing
information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the
Milestone One Rubric.
Milestone Two: Arbitrage
This milestone is submitted in Module Four. The law of one price and purchasing power parity ensure that even though exchange rates may fluctuate, a
consumer will pay the same price for an item or basket of goods no matter which currency is used in a particular country. At times, an individual or business will
take advantage of exchange rates to gain more value or wealth from international trade; this is called arbitrage.
Write a paper expanding the explanation of these two theories, utilizing and comparing goods purchased in China with yuan and those same goods
purchased in the United States with dollars. Incorporate research to fully describe purchasing power parity and the law of one price.
Provide an example and explanation of how the possibility of arbitrage may be related to both of these concepts.
Explain the differences between covered interest arbitrage, intermarket arbitrage, and triangular arbitrage, and how the cycle of investments and cross
rates played a part.
What is your opinion of this type of arbitrage as it relates to foreign exchange—is this unethical behavior or merely an investment strategy?
This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing
information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the
Milestone Two Rubric.
Milestone Three: Currency Market Intervention
This milestone is submitted in Module Five. In this module, we are investigating why governments try to intervene in the currency market to keep values of their
own currency low. This practice is used to promote the sale of goods to other countries and create additional exports. Here, the purchasing company views the
lower value of the foreign currency as a bargain for purchasing goods because the lesser value purchases a larger quantity.
In expanding the research and knowledge of the ongoing relationship between the United States and China, write a paper to summarize currency market
intervention and decide whether this is a useful tool. Explain your rationale.
Cite an example of how intervention has been used to benefit either of these countries and the circumstances surrounding this intervention. Did the
United States or China succeed in their efforts? How is this known? Overall, do you believe this was a beneficial choice for the government and country?
What data is your opinion based upon?
This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing
information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the
Milestone Three Rubric.
Final Presentation
The final presentation is due at the end of Module Seven. You will create a presentation to incorporate the knowledge gained and information presented in the
previous research, interview, and milestones to explain how a company may break into global enterprise by gaining a new contract, whether the organizational
structure and business objective play a part in the company’s entrance to international trade, how transaction and other exposures play a part in the success or
failure, types of domestic and international financing options for the business or project, and the changes or effects of the balance of payments and trade
balance between the two countries and how each may cause fluctuations of interest rates, exchange rates, and the overall cost of the venture. Include an
example of purchasing power parity, types of possible arbitrage, and how this company will decide if the potential profits are worth the risks.
Keep in mind that this is your final project for this course. It should include all concepts covered in this course, extreme detail about historical trade between
China and the United States, and your opinion of what the future may hold between these two countries. Utilize as many details as possible into this project, but
do not copy the same information previously submitted. This submission is graded with the Final Presentation Rubric (below).
Final Presentation Rubric
The final presentation should be a minimum of 10–12 slides in Prezi, video, or other tool, including a title slide and reference slide. The APA style format must be
used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable.
This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.
Critical Elements
Breaking Into Global
Enterprise
Exemplary (100%)
Meets “Proficient” criteria and
cites examples of how a
company may break into global
enterprise by gaining a new
contract
Proficient (85%)
Explains how a company may
break into global enterprise by
gaining a new contract,
supported with evidence
Transaction and
Exposures With
Financing Options
Provides in-depth analysis
explaining how transaction and
other exposures influence the
success or failure with
international trade, including
types of financing options
available. Citations support
analysis
Meets “Proficient” criteria in
assessing the changes or
effects of the balance of
payments and trade balance
between the United States and
China and how each may cause
rates fluctuations and overall
venture cost. Citations support
conclusion
Provides analysis that explains
how transaction and other
exposures influence the success
or failure with international
trade, including types of
financing options available.
Supporting evidence is provided
Draws insightful conclusions
that are thoroughly defended
with evidence and examples of
purchasing power parity,
possible types of arbitrage, and
how the company will decide if
the potential profits are worth
the risks
Draws informed conclusions
that are justified with evidence
and examples of purchasing
power parity, possible types of
arbitrage, and how the
company will decide if the
potential profits are worth the
risks
Balance of Payments
and Trade Balance;
Fluctuations of Rates
Purchasing Power
Parity and Arbitrage
Assesses the changes or effects
of the balance of payments and
trade balance between the
United States and China and
how each may cause rates
fluctuations and overall venture
cost. Supporting evidence is
provided
Needs Improvement (55%)
Explains how a company may
break into global enterprise by
gaining a new contract;
however, examples discussed
may have some gaps and
misinformation
Provides analysis that explains
how transaction and other
exposures influence success or
failure with international trade,
including types of financing
options available; however,
evidence cited may have some
gaps and misinformation
Assesses the changes or effects
of the balance of payments and
trade balance between the
United States and China and
how each may cause rates
fluctuations and overall venture
cost; however, supporting
evidence may be incorrect or
have some gaps and
misinformation
Draws conclusions about
purchasing power parity,
possible types of arbitrage, and
how the company will decide if
the potential profits are worth
the risks, but does not defend
with supporting evidence
Not Evident (0%)
Does not explain how a
company may break into global
enterprise by gaining a new
contract
Value
25
Does not provide analysis that
explains how transaction and
other exposures influence
success or failure with
international trade, including
types of financing options
available
20
Does not correctly assess the
changes or effects of the
balance of payments and trade
balance between the United
States and China and how each
may cause rates fluctuations
and overall venture cost
20
Does not draw logical
conclusions about purchasing
power parity, possible types of
arbitrage, and how the
company will decide if the
potential profits are worth the
risks. Does not provide
supporting evidence
25
Writing
(Mechanics/Citations)
No errors related to
organization, grammar and
style, and citations
Minor errors related to
organization, grammar and
style, and citations
Some errors related to
organization, grammar and
style, and citations
Major errors related to
organization, grammar and
style, and citations
Earned Total
10
100%
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