International Investing and Multinational Corporations: A Group Project

This assignment is divided into two parts:

• • PART 1 (due in week 6) is worth 15% of your overall individual grade. For Part 1 you will deliver a minimum of a 8 page paper.
  • PART 2 (due in week 12) is worth 20% of your overall individual grade. For Part 2 you will deliver a minimum of a 10-page paper.At the start of the course students will be assigned two companies, either Canadian or USA corporations. One company you will be required to run and the other you will be required to monitor its stock prices Include at least two references other than in addition to your textbook. Cite references in text and create a reference list at the end each document under the heading References. Follow APA 7 formatPlease review the Rubric for each part of the assignment on eCentennial to maximize your grade.To submit your file, rename it as follows: Group#_Assignment#-INTL-303. Upload the document to the assignment drop box.Submit each report through Turnitin with a maximum similarity of 20% (files not submitted through Turnitin will earn a zero grade).A late penalty of 10% per day will be levied on late submissions.A template is located in the course document menu.

This project allows you to learn more about international investing and about firms that compete in the global arena.

You will be assigned a Canadian or USA company to run. The focus is to extend the company’s product line. You are required to identify an international supplier to purchase a product or raw material to meet this goal.

You will also be assigned a USA or Canadian multinational corporation (MNC), for which you are required to monitor the company’s stock.

You will be required to do the following:

Evaluate the financial need of your MNC and choose the most cost-effective way to finance your purchase.

Examine the existing markets and evaluate the strengths and weakness of your MNC.

Analyze the risk of entering a foreign market.

Conduct a research and review the performance of your MNC, the corporation stock being monitored over the last 2 years and monitor the stock for the last 12 months.

Explain the performance of the corporation and why it performs well or poorly relative to the overall market index.

Research and explanations should provide some insight into what is driving the valuation of a corporation over time and how the MNC protects its value.

Conduct corporation research on sites like: www.msn.com, Yahoo Finance, Google Finance, Market Watch, Morningstar, Seeking Alpha, Financial Post, CNBC.com and Bloomberg.

Multinational Corporations (MNC) are defined as firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. The goal of these managers is to maximize their firm’s value. The MNC objectives are to identify new markets to increase market share, invest excess cash, and ensure the soundness of any host country's financial market. As the CFO you are asked to analyze the strengths and risk of a potential new market and prepare a report to present to the Board. You will be given 8 questions to answer, and each question will represent a heading in your documents.

PART 1: Answer the first four questions. Each group member should respond to one question and put their name next to the response they provided. One person in the group will put all answers together following APA format (including references), using each question as a heading, and submit only one file.

PART 1 REPORT - Answer the following questions:

Find a product that will compliment the existing products for Silk and Snow; your goal is to extend the company’s product line

Find an oversea supplier for the product you want to import, that is the new product line for Silk and Snow

1. Overview of Silk & Snow.

Provide an overview of the corporation to include but not limited to, when and how it was incorporated, by who, the board of directors, specific interest of the corporation, its headquarters, size, regions of operation and strength in the market.

The MNC wants to expand its product line in Canada. Choose a product that you can adopt to extend the MNC’s product line and explain your reasons for choosing the product. (For example, Aldo sells shoes and accessories and could extend their product line to include perfume). You can purchase a product or raw material to produce a product.

Explain the gap (the need for the product, support your argument) in the market.

Explain the potential for growth (why do you think the product will sell well in the Canadian market, support your arguments).

Discuss if the corporation has a competitor (identify your competitors and discuss your competitive advantage).

Provide an overview of the supplier and why you chose the supplier (identify a suppler in a foreign country and discuss why you chose the supplier).