FIN334 International Finance
Paper Description Imagine that your manager has asked you to prepare a formal business proposal for upper management to expand the production of one of the company’s products to a specific country. The company is one of the Fortune 500 companies and is already a multinational corporation (MNC). This expansion would be to experience growth in a nation where they do not have either a major or a minor presence. You may select the company, country of expansion, and product line to be produced in that country. The only qualifiers are as stated above: the country must already be an MNC and must be listed as one of the Fortune 500. Your proposal should include the following elements: A brief description of the company’s current financial status and pertinent industry ratios, as well as the current economic status of the company’s domestic country and the country to which it has chosen to expand Discussion of the risk factors involved with the expansion and what the company can do to mitigate those risks, including transaction, translation, and operating exposures Discussion of the foreign exchange market, including exchange rates for the country chosen and why this country presents a good opportunity for the expansion A budget for the expansion, including tax exposure and treatment Discussion of the global cost of capital and methods of raising the capital for the expansion Analytical conclusion that summarizes the merits of expansion This is a formal proposal and should take that format; however, as an academic assignment, it must also follow APA guidelines, including in-text citations, a references page, and a title page. You must cite company relevant information, statements you are making as fact, definitional material, theory points, and all data taken from a source that is used to develop your hypothetical data. You are required to have section headers within the proposal and a table of contents. Your paper should be between in length, which is about 6 to 8 pages using a typical font and spacing. You are encouraged to include charts and other visuals wherever they are appropriate and helpful.