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As a member of the finance team for an MNC, GBATT, you've been tasked by the CFO with monitoring the value of the currency used in foreign and domestic spending. The CFO asked you to provide some possible strategies to hedge against exchange rate risk.

Using the Argosy University online library resources, research strategies utilized to hedge against exchange rate risk. Then, based on your assigned readings and additional research, do the following:

Explain what exchange rate risk is and how it may affect international firms.

Identify three exchange rate hedging strategies and explain how GBATT could use them to help manage risks associated with exchange rates.

Provide some real-world examples of firms employing these strategies, citing sources to support your position.

Assignment 2: Discussion 2-Gross Domestic Product and Purchasing Power Parity

The CFO of GBATT is not only concerned about the exchange rates of the different currencies in the countries where GBATT operates, but is also concerned about the purchasing power of the target customers in the various countries. The CFO has asked you to provide a document comparing and contrasting the gross domestic product (GDP) and the purchasing power parity (PPP) of five (5) different countries.

Using the Argosy University online library resources and reliable and reputable Internet sites, do the following:

Select five countries and list their GDPs and their PPPs. Use the same year for the data for each country.
Compare and contrast the relationships between the chosen countries' GDPs and their PPPs.
What does the data indicate about business decisions related to GBATT targeting customers in each of those countries?
Support your positions with scholarly sources.

Assignment 3: Discussion 3-International Equity and Bond Markets

Earlier, the CFO of GBATT had you look at capital and financial structures in general. Now, the CFO has asked you to look at the international debt and equity markets available for GBATT as a precursor to possibly changing the firm's capital structure.

Using the Argosy University online library resources and reliable and reputable Internet sites, do the following to provide the information the CFO requested:

Analyze why GBATT may want to issue stock shares in a foreign market.

Identify 3 international equity markets and evaluate their attractiveness to GBATT.

Identify two groups of bonds in the international bond market, describe the characteristics of each group, and explain why GBATT may want to issue debt in each of the groups.
Support your positions with scholarly sources.

Assignment 4: Discussion 4-Compliance and Ethics in Risk Management

During the past couple of decades there have been high profile cases of corporate scandals resulting in not only criminal prosecutions of senior executives within the guilty firm, but severe financial loss or even dissolution of the corporation. Most of the ethical lapses within the corporations involved various accounting misrepresentations to cover fraudulent activities. The inherent risks in managing activities in multiple countries with different political systems and cultures pose other ethical challenges.

As part of his governance and control responsibilities, the CFO of GBATT has asked you to provide a brief overview of the ethical pitfalls to be avoided when managing risks in different countries with different political systems and cultures.
To complete the overview, do the following:

Provide a brief description of the Foreign Corrupt Practices Act (FCPA) and recent anti-corruption efforts by International organizations.
Identify and explain two or three serious consequences for the firm if it fails to comply with the FCPA and other anti-corruptions efforts. Discuss consequences beyond any statutory penalties.

Assignment 5: Discussion 5-Research Topics on Managerial Problems

Based on your business experience and the information accumulated in this class, identify three possible research topics related to the subject of the course.

Describe the managerial problems or opportunities each of the three topics address?
Provide a short description for each research topic, highlighting:
The problem or opportunity in organizations that needs to be addressed
The purpose of the research
The question(s) that, if answered, will help in solving the problem or seizing the opportunity

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91707050

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