International Finance: Paper Response Questions

The International Monetary Fund (IMF): Should the fundamental change in approach be implemented?

Write a 2-page double-spaced paper (no less than 500 words) responding to any two of the following questions. When citing research and journal articles, be sure the full reference is added at the end of your paper in APA format. Do not use examples provided in the required course materials; you must research your own examples and provide citations.

The International Monetary Fund (IMF) has 189 member countries and describes its mission as “promotes international financial stability and monetary cooperation.” However, the IMF has received much criticism around the world. Read about the IMF at European Network on Debt and Developmentand discuss whether or not you agree with the author’s fundamental change in approach for the IMF to embark on. Be sure to provide a rationale in your response. [MO 3.1]

You manufacture wine goblets. In mid-June you receive an order for 10,000 goblets from Japan. Payment of ¥400,000 is due in mid-December. You expect the yen to rise from its present rate of $1 = ¥130 to $1 = ¥100 by December. You can borrow yen at 6% per annum. What should you do and why?

Ford exports autos to Australia, but the strong U.S. dollar (USD) against the Australian dollar (AUD) hurts sales of Ford there, which is the fourth best selling auto brand. Australia also imports other automobiles such as Volkswagen from Germany and manufactures Toyota with Japanese parts. Which hedging tools could Ford use to grow its market share in Australia? 

As CEO of an international firm, how would you finance your firm in the international capital markets? Describe your firm, how the components you chose for financing would be viable, and how your investors would be repaid in a certain time frame. Use a specific host country for your investment. 

Do you believe a one world global currency should replace all existing currencies? Should a synthetic hegemony currency (SHC) replace the U.S. dollar (USD) as the global reserve currency? Read Mark Carney Proposes a Digital Reserve Currency and How Much Actual Money Is There in the World. Be sure to explore the ramifications for the USD in your response.

Should all countries become cashless societies? Analyze the pros and cons of a cashless world versus data privacy. Consider the following article: What Can We Learn from Sweden, the Ultimate Cashless Society? 

Do you think a one world banking system should be implemented to integrate all banks around the globe? Evaluate the pros and cons of such a system and defend your position. Also, review the Bank for International Settlements website. Should the Bank for International Settlements (BIS) play a role?

Select a country and describe how its government’s economic policies, business environment, trade policy, investment policy and cultural issues have enticed foreign investors to invest in the country. Use specific examples in your response.

Describe an international firm including its mission, countries of operation, and sales volume. Illustrate the type of financial organizational structure the firm uses—centralized, decentralized or hybrid—and discuss the advantages the structure provides to the firm in each country. Choose a new host country for the firm and explore which type of financial organizational structure would function best there. [MO 3.6]