Unit I-International Finance
Choose an international company on which to base your journal entry. Find a recent online article about your chosen company that discusses international finance, provides real-world examples, and discusses concepts covered in this unit. Briefly summarize the article, and provide a link.
Reflect on the company, the concepts in the article, and the commonly accepted goal of a multinational corporation to maximize shareholder wealth.
Choose three of the prompts below to address in your journal entry.
Do you believe the company is doing a good job of shareholder wealth maximization? Why, or why not?
Does the company you have chosen to study have any additional goals, besides maximizing shareholder wealth?
What theory of international expansion did your company most likely have as a rationale for expanding internationally?
Was the decision to expand internationally likely based on one theory or a combination of theories? What method of business does your company use to conduct international business? Why?
Is there another alternative form of conducting business that might have worked for your company?
Suggested search terms are listed below: repatriated foreign earnings, country risk, direct foreign investment, joint venture, international licensing, multinational corporation, finance risk, balance of trade, international trade, outsourcing, and currency effects.