Select ONE (1) stock of U.S.-based MNCs that conduct a substantial amount of international business. Next, select ONE (1) foreign stock that are traded on U.S. stock exchanges. Requirements: Students required to conduct extensive reading from reliable sources.

1. Critically analyze whether the performance of U.S.-based MNCs is driven by the U.S. market. Then, assess the relationship between the U.S. market index movements and the stocks price movements. Go to the site finance.yahoo.com/?u and search for your stock. Under Chart, click on Comparison and select S&P (which represents the S&P 500 Index). If you want to review a list of possible stocks, go to biz.yahoo.com/p (which lists stocks by sectors or industries).

2. Critically interpret whether the foreign stocks price movements appear to be driven by local market conditions based on specified country market index. Then, assess the relationship between the market index movements and the stocks price movements.

3. Critically analyze whether your foreign stocks performance is driven by the U.S. market (using the S&P 500 as a market proxy).

4. Review annual reports and news about your chosen U.S.-based MNCs to determine where it does most of its business and the foreign currency to which it is most exposed. Critically evaluate whether your U.S.-based MNCs stock performance is influenced by the exchange rate movements of the foreign currency (against the U.S. dollar) to which it is most exposed.

5. Critically discuss whether the stock performance of your foreign firms is influenced by the exchange rate movements of the firms local currency against the U.S. dollar. Provide your assessment of the relationship between the currencys exchange rate movements and the performance of the stock.

6. Provide conclusion based on your finding.