Ask Financial Management Expert

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

Have any Question?


Related Questions in Financial Management

Assignment problems1 on the day harry was born his parents

Assignment Problems 1. On the day Harry was born, his parents put $1600 into an investment account that promises to pay a fixed interest rate of 5 percent per year. How much money will Harry have in this account when he ...

1 activities of a company that require the spending of cash

1) Activities of a company that require the spending of cash are known as: A) Uses of cash. B) Cash on hand. C) Cash receipts. D) Sources of cash. E) Cash collections. 2) Relationships determined from a firm's financial ...

Module discussion forumto prepare for this discussion

Module : Discussion Forum To prepare for this discussion, review "Basics of Speechwriting" and "Basics of Giving a Speech" in textbook Chapter 15. Then watch this video of Apple founder and CEO Steve Jobs giving the 2005 ...

Launching a new product linefor this portfolio project

Launching a New Product Line For this Portfolio Project Option, you will act as an employee in a large company that develops and distributes men's and women's personal care products. The company has developed a new produ ...

Question 1 discuss valuing bonds and how interest rates

Question : 1) Discuss valuing bonds and how interest rates affect their value. Also consider the importance of the yield-to-maturity (YTM). 2) Discuss common stocks and preferred stocks. Also, which common stock valuatio ...

Introductionlast week you determined the root causes of the

Introduction Last week, you determined the root cause(s) of the problem you are trying to resolve for your final paper. As a reminder, the decision you are working on is the one that you selected in week two. This week, ...

You have owned and operated a successful brick-and-mortar

You have owned and operated a successful brick-and-mortar business for several years. Due to increased competition from other retailers, you have decided to expand your operations to sell your products via the Internet. ...

You will be conducting an interview with a market research

You will be conducting an interview with a market research professional or a company representative. Use the results of your research to make specific recommendations on how market research can be applied to the Marketpl ...

Question 1 what is marketing research what are the two

Question 1: What is marketing research? What are the two primary types of research? Question 2: What factors influence marketing research? Question 3: The role of statistics in business decision-making? Assignment : Sele ...

Chapter 74 for commercial banks what is meant by a managed

Chapter 7 4. For commercial banks, what is meant by a managed liability? What role do liquid assets play on the balance sheet of commercial banks? What role do money market instruments play in the asset and liability man ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As