Assignment:
DirecTV is one of the largest providers of satellite television in the world. It is a U.S.-based corporation but has subsidiaries throughout Latin America in countries such as Argentina, Chile, and Venezuela. Latin America is volatile part of the world with issues of political strife and often extreme economic fluctuations. Inflation and currency exchange rates are often especially volatile in this part of the world. DirecTV Latin America even filed for bankruptcy protection in 2003 due to its many woes from the unrest and economic hardship in this part of the world. The company is currently doing much better but still faces a lot of risks. Using the online library, do some research on DirecTV and its operations in Latin America. Here are a some articles to get you started: Ramachandran, S. (Feb. 14, 2013). DirecTV Profit Rises on Latin America Growth. Wall Street Journal (Online), New York, NY [Available in ProQuest] Yao, D. (Feb 25, 2014). DIRECTV faces currency devaluation risks in Venezuela. SNL Kagan Media & Communications Report
After researching DirecTV and reviewing the background materials on international financial management, write a 4 page paper addressing the following questions:
1. What major political events in Latin America are the biggest threat to DirecTV's financial performance? What steps can be taken to protect against these risks?
2. What major international financial or economic risks in Latin American economies should DirecTV's financial management team worry about the most? What can they do to hedge against these risks?
3. What major business risk from international competitors do you think DirecTV might face? What can it do to protect against these risks?
Assignment Expectations
• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don't go off on tangents or devote a lot of space to general background materials.
• APA format well cited references and well cited in text references.