Part 1. 700 to 1000 words
Describe and discuss 4 areas in which purely domestic firms are exposed to international risks though they operate only in the U.S. market.
- Define and discuss major differences between a domestic and multinational firm.
- Discuss four ways that firms can benefit in the international market.
- Define corporate governance and explain the four main provisions of the Sarbanes-Oxley Act 2002 (SOX).
Part 2 3 to 4 pages
You need to order US $100,000 reams of paper from China to complete an order from an important commercial customer in 30 days. The current rate of exchange is USD/CNY 6.5766. Ignoring other transaction expenses associated with the order, how many Yuan would you need to pay the Chinese supplier? Define the meaning of Foreign Exchange. Assuming that you have a choice in paying immediately, or in 30 days, define and describe, providing examples of how you may use the following in the completing the transaction:
- Define and Explain the use of Foreign Currency Derivatives
- Spot, Forward, and Futures Currency contracts
- Bid/Ask spreads
- Definition and use of Currency Options
