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’s 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 risks of a potential new market and prepare a report to present to the Board.
MNC to run Oceanfood Sales ltd
3. Entering a new market comes with risk.
(a) What are the financial risks of the host country?
(b) What are the political and economic risks of the host country?
(c) Discuss the types of foreign exchange exposures
(d) Which of the foreign exchange exposures will apply to the MNC and why?
(e) Explain how the home currency has changed over the last three months and how will it impact the MNC’s business.
APA format (including references),