7:43 ZVO JAWWALI.. Running+Your+Own+MNC+++project+finn432 Chapter 8 Running Your Own MNC Determining Whether IFE Holds Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of the foreign country in which you plan to do business and the U.S. rate over the last five or so quarters. Then, review the exchange rate percentage change in the foreign currency of concern over each of those corresponding quarters to determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency. Chapter 9 Running Your Own MNC Monitoring Exchange Rate Trends Use a business periodical or the Internet to determine how the value of the foreign currency of concern has changed in each of the last five weeks. Does it appear that there is a trend over the last five weeks? What is the mean percent-age change over these weeks? If you believed that the currency's value would continue following the recent trend, would it appreciate or depreciate in the near future? Chapter 13 Running Your Own MNC Establishing a subsidiary in Foreign country 1. Assuming that your international business is successful, identify reasons why it may be feasible to establish a small subsidiary in the foreign country rather than continue exporting. Identify the disadvantages associated with establishing a small subsidiary in the foreign country of concern. Chapter 14 Running Your Own MNC Deriving a Required Rate of Return for an International Project Consider a possible project that would result in expansion of your international business. Describe how you would derive a required rate of return for this project. 7:43 ZVO JAWWALI.. Running+Your+Own+MNC+++project+finn432 Chapter 8 Running Your Own MNC Determining Whether IFE Holds Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of the foreign country in which you plan to do business and the U.S. rate over the last five or so quarters. Then, review the exchange rate percentage change in the foreign currency of concern over each of those corresponding quarters to determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency. Chapter 9 Running Your Own MNC Monitoring Exchange Rate Trends Use a business periodical or the Internet to determine how the value of the foreign currency of concern has changed in each of the last five weeks. Does it appear that there is a trend over the last five weeks? What is the mean percent-age change over these weeks? If you believed that the currency's value would continue following the recent trend, would it appreciate or depreciate in the near future? Chapter 13 Running Your Own MNC Establishing a subsidiary in Foreign country 1. Assuming that your international business is successful, identify reasons why it may be feasible to establish a small subsidiary in the foreign country rather than continue exporting. Identify the disadvantages associated with establishing a small subsidiary in the foreign country of concern. Chapter 14 Running Your Own MNC Deriving a Required Rate of Return for an International Project Consider a possible project that would result in expansion of your international business. Describe how you would derive a required rate of return for this project
