Assignment: Exchange Rates
Provide at least three sources. If used, citations to the dictionary will be in addition to the required three sources.
• Discuss political risk in the analysis of the MNC's risk. The MNC is headquartered in the U.S. and reports its financial statements according to U.S. GAAP, in U.S. dollars.
• Include the chart as Appendix A in a 2 to 3 page paper that reviews the challenges that a MNC would encounter if they had operations in all five countries.
• Research exchange rates between the U.S. and five other countries of your choice and create a chart that shows the exchange rate comparison.
• Read X-rates,
• Objective: Examine exchange rate risk and political risk, and how MNCs manage them.
Instructions
When an organization works across country borders the complexity of business operations increases. One of the things that an international company will need to consider is the impact of exchange rates. This exercise includes the comparison of multiple currencies against the U.S. dollar. MNCs encounter some different challenges in financial management than do domestic firms. One of the primary challenges is dealing with exchange rates. Companies that operate in multiple nations must deal with different rates of exchange between those companies. It is also challenging to have differing accounting standards in numerous countries and to raise capital in other countries. In addition, political risks can be a factor in managing MNCs.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.