Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Please review the lecture notes and give a qualitative example of each of the following: How fluctuating exchange rates can be beneficial to MNCs and how they can affect MNCs negatively. You must give one example of each scenario Furthermore, your answer must be purely qualitative. In other words, you should not use any numerical data to answer this question.

no plagiarize please.

Lecture notes:

1. Multinational corporation (MNC): A firm that operates in more than one country.

2. Reasons for going overseas:

A. Expanded consumer base
B. Production efficiencies
C. Access to resources and technologies
D. Diversification

3. Exchange rates: The price of one currency in terms of another currency

4. Issues to deal with when venturing abroad:

A. Exchange rates
B. Economic, legal and political issues
C. Language and culture

5. 3 types of exposures faced by multinational firms:

A. Transaction exposure: Exposure arising from outstanding obligations (payables and receivables) in foreign currencies
B. Translation exposure: Also referred to as accounting exposure; arises when financial statements are translated into the home currency
C. Economic exposure: The long term impact of multinationalism on the competitive position of the firm

6. Multinational corporation (MNC) vs. Transnational corporation (TNC):

A. MNC: A firm that has operations in a foreign country regardless of the nature or size of the operation.
B. TNC: A firm that has a foreign subsidiary. TNCs are the “ultimate” forms of corporate multinationalism.

7. Corporate hedging policy: A policy thereby firms try to reduce exchange rate exposure by “locking in” the exchange rate at which a transaction can be executed. Firms can do so by entering into a forward contract (negotiated typically through a bank) or by purchasing currency futures on an organized exchanged. In an earlier chapter, we discussed financial options. Currency options can also be used as part of a company’s hedging policy.

8. Multinational capital budgeting: Generally more complex than domestic CB projects; in addition to the issues discussed in previous chapters, a host of other issues need to be addressed. Some of these issues are: Earnings repatriation, exchange rates, foreign taxes and political issues.


Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code “Newclient” for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.

The post give a qualitative example of each of the following appeared first on Top Premier Essays.


"Is this question part of your assignment? We Can Help!"

testimonials icon
The physiology/pathophysiology of the subjectSynthesize the knowledge gained from the literature research into a comprehensive understanding...
testimonials icon
The Power of Imitation Everything done, from the time one is born, is acquired from what...
testimonials icon
NursingApplication of Nursing Theory to Administrative Practice Arena /Impact of Nursing Theory Upon Healthcare OrganizationOrder Des...
testimonials icon
Essay two to three pages | Introduction to ethics | Berkeley College of New York   Based upon your r...
testimonials icon
I am in my second semester of nursing school and currently in Med Surg. I did not pass the HESI the first time, and so I have to retake it. I was j...
testimonials icon
/*! elementor - v3.6.5 - 27-04-2022 */ .elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading...
testimonials icon
Take That! Understanding Labeling of Psychopharmacological MedicationsThe product labeling for a medication contains a wealth of...
testimonials icon
1Running head: NUTRITIONNutritionStudents nameInstitution2NUTRITIONNutritionTo choose what is important to me, it is necessary to consider factors su...
testimonials icon
Week 6 Discussion 1Use the Internet to find and research a company in which you are at least somewhat familiar. Be prepared to discuss....
testimonials icon
 1.       Executive Summary for Reality Recruiting"Life is but a dream. Let us help you make your dream job a reality!"...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price