IBP assignment
Due 12/10/2014 at 11:30pm
International Business Practices
Write 1100-1200 words: Be substantive and clear, and use examples to reinforce your ideas.
Despite some of the business challenges that you identified about your chosen country of Mexico, 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.
· Discuss its options and the foreign exchange aspects that affect the financing for the MNC. Include the following:
o Foreign currency risk
o Why they need to hedge foreign exchange
o What sort of foreign exchange instruments you would recommend
o 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.
*Country is Mexico
*Ensure you clearly answer all questions above fully.
*Use specific examples.
*Must be written in APA format
*Must have at least 3 references, in-text citations, Headings, in APA format