Whether they have to be aware of any government regulations that would affect earnings and cash flow
Now i need you to add 300 words ant the end of the paper as follow. Where it says phase 4IP it is talking about this assignment itself.Despite some of the business challenges that you identified about your chosen country, you decided to move ahead and open an office in the financial center of this country. Your first customer is a large MNC that is looking to finance a plant in Latin America. They have asked for your assistance in advising them on this business endeavor.
Using information that you gathered from your Phase 4 IP and other course materials, discuss its options and the foreign exchange aspects that affect the financing for the MNC. Include the following:
Foreign currency risk
Why they need to hedge foreign exchange
What sort of foreign exchange instruments you would recommend
Whether they have to be aware of any government regulations that would affect earnings and cash flow
Include the need to be aware of inflation and interest rates and how it affects exchange rates.
Keep in mind that the country that the plant is in does not necessarily have to be where the financing is done.
…………………..Answer preview……………………
Before a business decides to enter a new market, it must carry out an analysis of the market it wishes to venture into. The business’ management team has to carry out a research on the various characteristics of the country that it wants to enter. It has to look if the legal, political and economic environment of the country favors its operations………………
APA
2132 words
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