He has asked you, the firm’s most recently hired financial analyst, to develop a 1-hour tutorial package that explains the basics of multinational financial management . With the growth in demand for exotic foods, Possum Inc.’s CEO person M is considering expanding the geographic footprint of its line of dried and smoked low-fat opossum, ostrich, and venison jerky snack packs. Europeans may not be as accepting of opossum jerky as initial research suggests, so the expansion will proceed in steps. Possum Inc.’s CFO, person K, although enthusiastic about the plan, is nonetheless concerned about how an international expansion and the additional risk that entails will affect the firm’s financial management process. Munger recognizes that the expansion carries some risk. The tutorial will be presented at the next board of directors meeting. To discuss: The purchasing power parity and what should be the price of the J package in country F.

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Chapter 17, Problem 8MC

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He has asked you, the firm’s most recently hired financial analyst, to develop a 1-hour tutorial package that explains the basics of multinational financial management. With the growth in demand for exotic foods, Possum Inc.’s CEO person M is considering expanding the geographic footprint of its line of dried and smoked low-fat opossum, ostrich, and venison jerky snack packs. Europeans may not be as accepting of opossum jerky as initial research suggests, so the expansion will proceed in steps. Possum Inc.’s CFO, person K, although enthusiastic about the plan, is nonetheless concerned about how an international expansion and the additional risk that entails will affect the firm’s financial management process. Munger recognizes that the expansion carries some risk. The tutorial will be presented at the next board of directors meeting.

To discuss: The purchasing power parity and what should be the price of the J package in country F.

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