Monitoring Movements in the Foreign Currency's Value:

What key factors likely affect the value of the foreign currency of concern over time?

Using Currency Futures and Options:

1. How can you use currency futures to hedge the exchange rate risk of your MNC?
2. How can you use currency options to hedge the exchange rate risk of your MNC?

Create an idea for your own MNC to conduct international business. Your idea should be simplified to the degree that you could possibly implement it someday. However, your idea should also be sufficiently creative to be successful if done properly. Your idea should focus on one country and one foreign currency, since many MNCs are focused in this manner when they are first created. So that you can recognize the issues regarding exchange rate risk that are discussed throughout this text, you should assume that you will receive foreign currency when selling your product. Your idea should be for a small MNC instead of a large MNC because even most large MNCs began as small firms. For each chapter, you will answer questions that aim to shape your own MNC. Following the completion of your project, you will present your idea in class or through ZOOM. Create an idea for your own MNC to conduct international business. Your idea should be simplified to the degree that you could possibly implement it someday. However, your idea should also be sufficiently creative to be successful if done properly. Your idea should focus on one country and one foreign currency, since many MNCs are focused in this manner when they are first created. So that you can recognize the issues regarding exchange rate risk that are discussed throughout this text, you should assume that you will receive foreign currency when selling your product. Your idea should be for a small MNC instead of a large MNC because even most large MNCs began as small firms. For each chapter, you will answer questions that aim to shape your own MNC. Following the completion of your project, you will present your idea in class or through ZOOM