Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the Caribbean region.Then, examine issues related to foreign exchange management within your multinational corporation. This exercise should address the following:    The form of MNC that the business takes, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given.  The main foreign currencies that will be used in the business.  The foreign exchange exposure of the company and how the company plans to manage this exposure. Any current financial issues that affect the operating environment of the MNC and how these issues affect the company’s foreign currency exposure.

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter3: Exploring Global Business
Section: Chapter Questions
Problem 9CC
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Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the Caribbean region.Then, examine issues related to foreign exchange management within your multinational corporation. This exercise should address the following: 

 

  1. The form of MNC that the business takes, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given. 
  2. The main foreign currencies that will be used in the business. 
  3. The foreign exchange exposure of the company and how the company plans to manage this exposure.
  4. Any current financial issues that affect the operating environment of the MNC and how these issues affect the company’s foreign currency exposure. 
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