The country for the Assignment is TURKEY. MNC and Export country is Saudi Arabia.

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. The following questions will help you define your MNC idea:

1. What is the product that you plan to sell?
2. What key factors likely affect the value of the main foreign currency to which your MNC is exposed over time? [You would need to closely monitor those factors over time when anticipated future exchange rate movements of that currency.
3. Review the data on forward and spot rates of your main foreign currency to determine whether the foreign currency typically exhibits a discount or a premium. Then review data on interest rates to compare the foreign country of concern and the home interest rates. Does it appear that the forward rate of the foreign currency exhibits a premium (discount) when its interest rate is lower (higher) than the home S. interest rate, as suggested by interest rate parity?
4. Is your business subject to transaction exposure? Economic exposure? Translation exposure? Explain why your business is or is not subject to each of these types of exposure.
5. Explain how you could hedge your exposur .
6. Describe the financial factors that expose your business to country risk. Describe the political factors that expose your business to country risk.