Pros and cons of accessing the global markets


Assume that you work for a corporation that is doing very well in the domestic market. Compare and contrast the overall pros and cons of accessing the global markets, and propose whether or not the company must consider such expansion. Give a rationale for your recommendation. Analyze the effects of both an artificially low and an artificially high exchange rate in relation to the country's economy. Give example of each exchange rate effect on a country of your choice.

From the e-Activity, find out key reasons why a multinational corporation might decide to borrow in a country like Brazil, where interest rates are high, instead of in a country like Switzerland, where interest rates are low. Give support for your rationale. From the scenario, choose two potential international markets in which TFC may wish to do business. Compare the currency markets of the two countries you have selected with that of the U.S. dollar. Based on currency considerations only, propose whether or not TFC should expand to the internationl markets that you have selected.

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Business Management: Pros and cons of accessing the global markets
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