...FIN 335 Quiz 1: Fall 2015 100 Points Possible Names:______Todd_________________________________________________ This quiz is due at the beginning of class on October 27th, 2015 (Tuesday). You may work in groups of two students. Please write each group member’s name at the top of the quiz. Working with students outside of your own group is prohibited. Please SHOW ALL WORK (including formulas where necessary) to receive full credit. Do not round in any intermediate steps (i.e. only round your final solution – round to six decimal points please). 1.) Assume that a fixed exchange rate system exists between the United States and the fictional country of Neverland. Note that the currency of the United States is the U.S. Dollar, while the currency of Neverland is the Gold Doubloon. Assume that the inflation rate becomes much higher in Neverland, relative to the inflation rate in the United States. Clearly explain how a fixed exchange rate system between Neverland and the United States could make the United States more vulnerable to economic problems (high inflation in this case) of Neverland while a floating exchange rate system between Neverland and the United States could lead to compounded economic problems in Neverland. Please use the countries given in the problem (the United States and Neverland) in your explanation. Clearly explain your logic and use graphs, as necessary. (45 Points) With a fixed exchange rate system existing between the United States and Neverland...
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...GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT LEN RUSHFIELD MBA 610.63 INTERNATIONAL FINANCE SPRING 2005 WEDNESDAY 6:00 PM – 10:00 PM WESTLAKE VILLAGE CENTER SYLLABUS 1 International Finance MBA 610.63 Westlake Village Center Wednesday 1/5-2/16/05 Len Rushfield (310) 474-5848 (603) 843-9683 (efax) leonard.rushfield@pepperdine.edu/ asiaptner@aol.com Course Objectives MBA 610.63 is intended to provide a foundation of understanding of international finance and the critical options for corporate financial management within the global markets. Intensive reading will establish the basis of information on international financial structure, processes and techniques. Cases will identify important real issues and provide experience in understanding alternative solutions and developing methods to reach these solutions. Course Description The course explores the responsibilities of financial managers of multinational firms or firms with multinational affiliates, suppliers, or product markets. Topics covered emphasize exchange rate risks and hedging using derivative securities such as futures contracts, forward contracts and options. International payment mechanisms and financing and trade strategies are examined and applied in a shareholder-value maximization framework. Texts and Course Materials Fundamentals of Multinational Finance, 2003, Moffett, Stonehill and Eiteman; Addison Wesley; ISBN-0-201-84484-2. Cases in International Finance, 2000; Moffett; Addison Wesley;...
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...Global Finance Environment Paper FIN/403 May 4, 2008 Globalization refers to the merging of national markets into one huge global marketplace. In today’s market, selling internationally is much easier due to falling barriers in cross-border trade. Now businesses don’t have to be industry giants to operate and succeed in global markets. Although it can be beneficial to offer a standard product that can be used worldwide, significant differences still exist between national markets such as cultural differences, consumer taste differences, product preferences and legal regulations. It is important to define and understand these differences when merging into national markets. Globalization is inevitable and it’s happening at an astonishing speed in nearly every market possible. The technology era that we are in has enabled businesses to join forces like never before and we are seeing significant changes in the global marketplace. There are main drivers in globalization and this paper will define three of them, as well as describe the risks associated with financial investing, and explain the importance of cultural sensitivity and ethics in global finance. Drivers of Globalization Market drivers Domestic markets are saturated and growth opportunities are often times limited. Expanding globally opens up many new opportunities allowing for real growth within a business. The following lists in detail the specific market drivers that play a key role...
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...UNIVERSITY OF NAIROBI SCHOOL OF BUSINESS MASTER OF BUSINESS ADMINISTRATION TERM PAPER TOPIC: ISSUES IN GLOBAL BUSINESS MANAGEMENT DSM 602: By DR. YABS NGETICH MONICAH D61/69197/2013 INTRODUCTION The scope of strategic business issues faced by companies and organizations striving to operate and be successful internationally has widened due to an increasingly broad geographic scope and the increasing complexity of technology. Strategic issues arise not only through the formal, periodic strategic planning processes in companies but also can, and quite often do arise unpredictably due to new insights, unexpected advances in technology or competitive activities in the market place. All companies have their way of identifying and dealing with these being their most critical strategic questions. However, theprocess of managing emerging strategic issues is typically non-structured, not necessarily optimally suited to enable the effective identification of the most critical questions and the appropriate allocation of top management attention and corporate intelligence support to answer the identified strategic questions. Despite the past research during 1960s, 1970s, and 1980s into the domain of strategic issues (SI), strategic issue management (SIM), and strategic issue management systems (SIMS) there is a scarcity applicable approaches for firms to use in improving their attention focus and distribution in strategic issue management processes. The underpinnings of strategic management...
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...inception in the 1880's. By nature we do not trust other countries other than our own but globalization is beginning to change all that. There was one way to describe country-to-country relations back then: non-existent. Well at lease when we talk of relations that is founded in trust and understanding. We forge alliances only because of the things we get from it. But globalization has formed some semblance of unity among all us and the concerns of other nation that back then were opted to be resolved on their own are now an issue with other countries as well and all unite to propel themselves to a solution. Globalization is often used for its financial connotations. The influence it has however is not contained solely to the economy. Other international aspects such as social relations, political discourse and psychological manifestations are also a part of globalization. We have constantly heard the globalization pros and cons and the debate of these globalization pros and cons continue up until now. Here is a bit of a crash course of the pros and the cons of globalization. Pros of globalization are that more accessible market for anyone all over the world regardless of color, race, and social class. “Steady supply of cash to developing countries and even the well established ones. There is an increase in the production capabilities of companies and because of this they now have more freedom to customize their services and products fitted to the needs of the consumers. Political merging...
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...clear that I look beyond my borders. I am interested in marketing, economics and business. A degree in International Business and Management will prepare me for a managerial role within a global organization. The degree will be a tool by which I will acquire a wide knowledge of international marketing, management, finance and trade. I will develop the professional skills that will be relevant, such as planning, intercultural teamwork, business communication and leadership. I am open-minded when relating with other cultures. I am independent and principled. I am self motivated and adventurous. I am fascinated by international businesses, their organization, their mode of entry into foreign countries, their adaptation and growth in culturally diverse environments and how they can improve. International Business Management In addition to this, global organizational concepts have witnessed rapid growth so as to be effective and efficient in all possible ways. New technology which involves automation and networking information, have influence on business behavior enabling it to have significant transformation. Creative thinking, adaptability and application of new technology are now the threads that run through the management of any business. For a business to not only be globally competitive but also to stay in the lead, it needs to apply and maximize effective and efficient technology within its business framework and management. The Bigger Picture I have studied nanotechnology...
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...July 1, 2014 Research Focuses of International Business 1. International Business Environment 2. Strategic Aspects of International Business Operations; Functional Aspects of International Business Operations a. Marketing b. Finance c. Production and Logistics d. Human Resources Dr. Youzhen Zhao Introduction: - government changes China market-oriented company - market economy = socialist, or capitalist? - 70s and 80s = only open select foreign companies places in China (special economic zone; Shenzhen, Zhuhai, ShanTo, XiaMen) - Chinese = cautious of the foreign companies; unknown factor of what they would do - foreign countries found labour costs = low - ex: 100 yuan/month for teacher - companies assemble components together = reduce the costs to a larger extent export more to the markets in China - Shanghai labour costs compared to other countries still relatively low, but is slowly rising - ex: pay 8 yuan/hour for cleaner (1.3 US dollars), but now is 20/yuan an hour - RMB is appreciating constantly outside of China, but depreciating within China - 70 years of purchasing = current Shanghai homes - land is owned by government - land, labour and raw material costs can escalate - China’s biggest attraction to multinational corps is land and market size - potential is so big that companies are interested - new perspectives of China nowadays = well-educated people, strong professionals, younger generation begins...
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...Unit 12 Assignment 1 P1 - Explain the international business environment in which a selected business operates. The business that I have chosen to produce a report on how they could expend their business internationally is my own business, Impossible Project. Impossible Project is a fashion brand based in the UK. We design and produce our own brand of high-end designer clothing and are just selling in the UK at the moment. It is a relatively small business at the moment, however we have the capacity in terms of finance and scale to start looking at trading internationally. The country Impossible Project has targeted to start of their international journey is China. I have chosen to use China for a variety of reasons; one being it is a BRIC country. “BRIC is an acronym for the economies of Brazil, Russia, India and China combined. The general consensus is that the term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers.” - http://www.investopedia.com/terms/b/bric.asp Political * Being a communist country means Chinese consumers feel forced into supporting Chinese brands as a pose to UK brands. | Economical * According to the latest government figures, growth picked up to 7.9% in the final three months of 2012, from 7.4% in the previous quarter * China is a BRIC country and will soon be one of the leading economic powers | ...
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...this assignment is to grasp a comprehensive understanding of the critical aspects of British Petroleum’s internationalization process, the implications it holds for the international business environment and achieving their internationalization objectives through contemporary context. Overview of organisation When discussing globalization it is critical to emphasis the importance a multinational corporation holds over the international business environment. A Multinational corporation (MNC) is an organisation that has registered facilities and assets in business endeavors in more than one country. MNC’s are highlighted for their success in incorporating products, ideas and cultures from more than one country in order to achieve a common goal. With reference to the definition of a MNC, British Petroleum (BP) is undoubtedly a MNC as it undergoes its business ventures throughout the entire world and in countries such as China, Australia, Canada and Mexico. A key aspect of MNC’s is to multi nationalize every aspect of your organisation when aiming to expand internationally, BP are successful in ensuring that every branch of BP around the world has the common sustainable goals. BP has a direct correlation in Foreign Direct Investment (FDI). A FDI is when an organisation finances into production or business ventures in an external country to the one they are operating in. There are many forms of FDI, however, BP are directly investing through expanding their own operations...
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...Introduction Changes are inevitable in the market. With the development of technology, people’s living style and demand will be change as well, so managers have to expand the size of business to make the organization more perfect and get effective, efficiency achievements. According to expand business, the company should do more international trade, it will make the globalization and the globalization has more benefits. For example, it can reduce the goods costing, which some countries can open the factories on China. However, the globalization has some disadvantages. For example, the global financial crisis occurred on 2008. This essay is going to analyses how globalization and global financial crisis in the business environment impact on the organization you work in and the tasks you undertake. The globalization refers to the system of contact among the countries of the world in order to improve the global economy. The globalization is the amalgamation of economics and societies all over the world. Globalization including economic, technological, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure (Hotbabefacthicks, 2010). The global financial crisis refers to a widespread economic emergency that began in 2007. Beginning with the crash of the United States financial system, the crisis quickly spread worldwide, thanks to the interconnected marks of modern global trading systems. It is still impossible...
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...| Reporting from: | BUS 251 (Business Communication) | Section #04 | Dated: 19/02/2015 | | Assignment Prepared by the members of The Hartwells’: | ID# | Naimul Kader | 1310590030 | Md. Ekramul Hafiz | 1130142030 | Mahdi Ahsan | 0930071030 | Richard Chakma | 1220316030 | Sabiha Naz Priyanka | 1310749630 | | Assignment Prepared for: | Mahmudur Rahman, | Lecturer, | School of Business | North South University | Tuesday, February 17, 2015 Mamun Ashrafi Nafisa Fashion House # 424 (Ground floor), Road # 30, New D.O.H.S, Mohakhali Dhaka-1206 Bangladesh. Dear Dave Nielson, Thank you for the opportunity to be considered for support by The Investment Alliance Ltd. (U.K). In the five short years since its founding, Nafisa Fashion has played a major role in the transformation of apparel ready-made garments industry from a market with too many unproductive, unsupervised firms with too much time to get into trouble to one providing quality service with assured value for money. We envision carrying on our legacy & have thus come up with an innovative program which will not just help us to penetrate the local industry but will also lead to become one of the top 3 leading suit manufacturers across the world. With that mantra in mind we have come up with “Virtual Growth Strategy” program. A priority need for the program, our project will focus on 5 aspects of the industry namely pricing in the global garment industry, Asian...
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...Unit 8 Assignment MBA 5101 1. In this case study; the firm Williams-Sonoma has exhibited great models of developing of his organization in a short period of time using a wide variety of strategies. That can provide benchmarks for firm to follow. They outlined the organization’s objective strategies that aligned with the business’s mission and helped the firm reach it objectives. This was the foundation that proved to successfully grow William-Sonoma. This business started by providing high-end culinary and serving equipment. Over time they started diversifying into other business areas. The modern William-Sonoma offers specialty products such as decoration and furnishing for the home. Over the next five year, Williams-Sonoma has the opportunity to capture a variety of markets, by providing superior products to increase shares in the industry. The company would be able to satisfy the needs of every consumer and potential consumer in all segments of decoration and home furnishings home. The company would be able to dominate the market and would achieve its target in both channels, retail and direct to customers. It would bolster Williams-Sonoma brand image and will achieve and maintain the competitive advantage in the home decoration market by his applying a distinctive strategies ties in the company’s mission with the organization’s goals and results in growth. 2. In the case, proves that Williams-Sonoma is constantly increasing its organization’s growth with its distinctive...
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...Prince Sports has been improving the lives of people through tennis since 1970. With their innovative product design, vast line of products, and wide range of consumers. Looking at current trends one could suggest that Prince may want to consider new tactics/marketing schemes. Reach out to a larger global market look at how this may benefit them in the future. In the 21st Century Prince Sports really should consider the current trends in marketing and how they could work for or against their success in the tennis industry. Considering, as stated by The Wall Street Journal, “Prince Sports Inc., filed for bankruptcy protection as it struggles to compete with better-equipped rivals.” (Benoit & Gleason, 2012). It doesn’t appear as though they have an issue with the products they deliver, since undergoing new ownership they are truly trying to rejuvenate their products and name. As noted by Forbes, “Prince is launching an entirely new product collection in the final months of 2013, which is a non-traditional move for a tennis brand. It has used the US Open to announce its launch of an “ESP” (extreme string pattern) racquet technology, along with new racquets and bags, T22 tennis shoes and performance Prince Tour eye-wear.” (Heitner, 2013) Consumers like new technologies and innovations and if Prince can continue to endorse tennis “Super Stars” such as David Ferrer, “the current world number five” (Long, 2012). They should be able to gain the attention and interest of a...
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...firms to local markets. 1989, came the idea of the transnational firm is described as a less bureaucratic firm that has differentiated subsidiary roles and control is mostly based on organizational culture and administrative heritage. It continues to examine the global multibusiness firm (GMBF), a more appropriate model, incorporates insights of earlier model but also identifies evolving business technologies and managerial management which have changed the strategic face of global business. Strategic assembly involves constructing firms in a forward looking manner with the aim of gaining and maintaining competitive advantage. There are three stages of international firms, multinationals, transnational and global multibussiness. And finally, the article talks about, more recent concept of transnational firms which has shifted focus of global strategy away from tension between local market and scale based economies. International companies of today are embedded in a turbulent environment which is direction and pace.GMBF construct proposes which are changing the international business environment. It identifies the resources needed so as to gain competitive advantage and also the strategic purpose of the resources. A case study of Renault group and Renault Turkey identifies the nature of relationship and dynamic character of global assembly. NAME: IRUNGU MARY...
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...Words Sitting alone on a West Midlands train, I buried my face in my hands wondering what on earth I should do. “I can’t do this,” I told myself. I’d just spent the day calling international schools in Europe trying to sell them an education package for a friend’s business. I think telesales is one of the most soul sucking activities in the entire business world! “I can’t make money for other people for the rest of my life,” I said. “I won’t.” It was the summer of 2005, and it was my seventh day back on British soil after serving an 18-month mission for the LDS church in the US. I graduated with a degree in international business management before my mission, but now the prospect of pushing paper for a career, like all the other business minions, was not appealing. Like the sunny countryside whizzing by, my own train of though was working its way through hills and valleys of possibility. By the time I stepped of that train in my hometown, I had decided to go back to school and leave the country. Speech-language pathology was my ticket out of town. Five months later I had a confirmation of my choice. Without ever asking for it, I received a brochure in the mail from a college in Boston about my chosen program. As I pored over the booklet, one sentence, one word reverberated from the page: “Emerson college desires compassionate students.” Compassion. One word, seven sounds, was reason enough for me to pack up my life, sell everything that didn’t fit in my black...
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