Tag: MNC

Explain why some financial institutions prefer to provide credit in financial markets outside their own country.Would you seek to acquire a company within the European Union or outside of it? Why?

If you were the head of a firm based in the United States,  answer the following questions, providing the rationale behind your answers:

Would you seek to acquire a company within the European Union or outside of it? Why?

Describe the advantages and disadvantages of the choice you made.

Describe the advantages and disadvantages inherent in the option you did not choose.

Explain why an MNC may invest funds in a financial market outside its own country.

Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

What stock markets are the MNC listed on? Give the stock price at the MNC’s year end and explain any fluctuations in price over the past year. Does it appear that the MNC issues stock in foreign countries?

Analysing a Multinational Corporation

QUESTIONS 1 – 3

What stock markets are the MNC listed on? Give the stock price at the MNC’s year end and explain any fluctuations in price over the past year. Does it appear that the MNC issues stock in foreign countries? 5 marks

What are the main currencies that the MNC uses to conduct its international business? Prepare a chart or table showing the direct and indirect quotation of each foreign currency in relation to the home currency of the MNC at the last year-end and the previous one. Also prepare a cross-exchange rate chart for these currencies for the same dates. 8 marks

Illustrate, using diagrams or tables and calculations, how the values of these currencies have changed (appreciated or depreciated) over the past year relative to the MNC’s home currency, and comment on the main reasons for these changes.

The answers to this question will be used in later sections to determine how the firm was affected by changes in the values of these currencies. 10 marks

Define a current problem in the selected country (China). Who is affected? Where are the individuals located? What are the resulting socioeconomic costs of the problem to the affected individuals?

Impact of Emerging Technology on the Economy of the Country

Write a paper (1,000-1,250 words) that discusses the following questions through your research and analysis on the effect of emerging technology on the economy of the selected country. Note that this assignment will be used as the basis for your Benchmark – Executive Summary assignment in Topic 8.

Define a current problem in the selected country (China). Who is affected? Where are the individuals located? What are the resulting socioeconomic costs of the problem to the affected individuals?

What global or local technologies are emerging that could be used to solve the problem? What are the costs associated with implementing the technology solution?

To what extent will this emerging technology foster sustainability practices on the economy in the selected country?

Explanation of how an existing MNC in the selected country could solve the problem by implementation of the emerging technology while supporting sustainability practices.

 

Why are so many companies opting for this strategy? What would be the considerations to use this strategy?

 

There are several ways companies can gain entry into a country to become a MNC.

One of the most common entry strategies for MNCs is the joint venture.

Why are so many companies opting for this strategy? What would be the considerations to use this strategy?

When would a fully owned subsidiary be a better choice?

Political risk also can weigh heavily on a

decision to move and operate into a country

Choose two countries and a specific industry. Then, describe the types of political risks associated with entering each of those countries for a company from that industry.

Is the risk associated for that company with those countries dependent on the type of entry for the company? Explain.
2 peer-reviewed sources needed