Critically evaluate the financial implications of the predicted exchange rate on assisting the decision making process in managing/hedging the exposure of exchange risk in the international business activities of the selected MNC.

Assuming the role of the International Finance Manager, you are required to prepare a report on the international financial management issues facing a MNC of your choice.

Specifically, in your report you need to address the following:

1)Critically analyse the international constraints, from a stakeholder perspective, affecting MNC’s international business activities.

2) Discuss the country risk analysis for one of the foreign subsidiaries of the selected MNC.

3)Choose at least one of the parity theories: PPP, IRP or IFE, and critically evaluate its/their implication/s on the MNC’s international business activities.
When discussing the chosen parity theory/theories, you need to:
• Incorporate into your discussion the academic empirical evidence of the selected parity theory/theories.
• Apply the relevant financial calculations of your chosen theory/theories to predict the exchange rate for your selected MNC.
• Critically evaluate the financial implications of the predicted exchange rate on assisting the decision making process in managing/hedging the exposure of exchange risk in the international business activities of the selected MNC.
4)Discuss the challenges with the existing currency hedging techniques of your selected MNC.
5) Evaluate the effect of three types of exchange rate exposure on MNC.
6)Identify and evaluate alternative solutions to mitigate the exchange rate risk exposures faced by the chosen MNC.