Create an idea for your own multinational corporation “MNC” to conduct international business, your idea should be simplified to the degree that you could possibly implement it some day, however your idea should be also sufficiently creative to be successful and done properly. your idea should focus on one domestic and one foreign country. so that you can recognize the issues regarding exchange rate risk are discussed through out this paper. you should assume that you will receive foreign currency when selling your product. your idea should be for a small multinational corporation .
1) what is the product you plan to sell?
2) what foreign country you plan to target?
3) how will you sell the product in that country? I.E ( distribute or by mail or etc..)
4) is there some evidence that consumers in that country would buy this type of product?
5) do you need to purchase supplies or to hire labor?
6) will any expenses you incur from producing the product be in $ or some other currency ?
By using online resources:
1) Identify factors that can affect the balance of trade between your domestic country and the country the you targeted for your business. Explain how these factors may affect supply and demand of your product?
2) Which of these factors is likely to be the most important in affecting the demand for your product?
3) Determine whether the product you plan to sell is already a main import or export to that country.
4) Review the import controls set by trading countries’ governments. Determine whether your business would be affected by trade regulations.