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.
- 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.
- Include a cover page containing the title of the assignment. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Analyze the current trends and impact of globalization on international financial management.
- Assess the basic functioning of the current arrangements of flexible exchange systems that dominate the international monetary system and explain the impact on business operations.
- Interpret the balance of payments accounts, and summarize key information to support financial planning and the strategic management of international business.
- Analyze the foreign exchange markets to anticipate fluctuations, minimize the negative impact on international business operations, and identify financing opportunities.
- Use technology and information resources to research issues in international banking and finance.
- Write clearly and concisely about international banking and finance using proper writing mechanics.