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please make sure each of the questions are answered (This discussion is based on the Running your Own MNC project from the textbook). Create an
please make sure each of the questions are answered
(This discussion is based on the Running your Own MNC project from the textbook). 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. To simplify, your idea should focus on one country and one foreign currency, since many MNCs are focused in this manner when they are first created. Please answer the following questions about your MNC: 1. Tell us about your MNC. (i.e. what is the product (or service) that you plan to sell?What foreign country do you plan to target? How will you sell the product in that country? (i.e., through a distributor? by mail?) Do you need to purchase supplies or to hire labor? 2. Explain how you will use the spot market for your business. Will you possibly need the forward market? Explain. 3. Is your MNC subject to exchange rate exposure? What type ? Explain. 4. Compare the various hedging techniques that are available to your company (those are reviewed in chapter 11)? Which hedging technique will you choose to manage your exchange rate exposure. Use hypothetical figures to illustrate with an example how you would hedge transactions exposure Step by Step Solution
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