Multinational Financial Management Fall 2015
COUNTRY AND BUSINESS ANALYSIS PROJECT
The objective of the project is to use concepts learned in class to assess 1) country risk and 2) retrospectively monitor spot foreign exchange rates over a continuous period of time, 3) review the currency exposure of that country's firm or MNC*, 4) present the information to the reader in a concise and clear manner, and 5) practice public speaking skills through the presentation of your country/firm and currency analysis in class. The project will focus on a macro-assessment of a country risk with consideration to a specific business or MNC.
* Please note that even though suggested, it is not required that the MNC you choose to present is of the country of your choice. It may be domiciled in a different country. In the body of the report the students will include:
1) Political risk analysis
2) Financial risk analysis
3) Visual presentation of the movements of exchange rate and the identification and discussion of important events and trends that have impacted the movements. At least five events have to be discussed. ? You are required to analyze at least 5 years of exchange rate movements relative to the US Dollar.
4) Overview of a chosen firm's (or MNC's) currency exposure and how changes in the exchange rates affected the company's currency exposure for that period (ONLY PART 4 IS NEEDED) 2 page only Our currency of choice is Venezuelan bolivar.
Articles referred to in support of the analysis should be cited at the end of your written report, using the APA standard.
Country Choice: You are free to choose any country. However, if you pick a country from the EU zone, you are required to analyze at least two years of the currency movement prior to Euro introduction.
Teams: You will work on this project in teams of about 4 students, depending on the class size. It is the team's responsibility to monitor that all members contribute equally to both the written report and oral presentation of the project.