Question For this assignment, students are asked to simulate their own multinational corporation (MNC). Students are required to justify the form of their own MNC, based in the Caribbean, which trades with three countries outside of the Caribbean region. Students will then examine issues related to foreign exchange management within their multinational corporation. This group assignment should address the following: 1. The form of MNC that the business takes, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given. 2. The main foreign currencies that will be used in the business. 3. The foreign exchange exposure of the company and how the company plans to manage this exposure. 4. Any current financial issues that affect the operating environment of the MNC and how these issues affect the company’s foreign currency exposure.
Question
For this assignment, students are asked to simulate their own multinational corporation (MNC). Students are required to justify the form of their own MNC, based in the Caribbean, which trades with three countries outside of the Caribbean region. Students will then examine issues related to foreign exchange management within their multinational corporation. This group assignment should address the following:
1. The form of MNC that the business takes, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given.
2. The main foreign currencies that will be used in the business.
3. The foreign exchange exposure of the company and how the company plans to manage this exposure.
4. Any current financial issues that affect the operating environment of the MNC and how these issues affect the company’s foreign currency exposure.
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