Research Term Paper (Run Your Own Multinational Corporation (MNC)), as detailed below: – Think of an idea for your own MNC to conduct international business. Your idea should be simplified to the degree that you could possibly implement it someday. Your idea should focus on one country and one foreign currency, since many MNCs are focused in this manner when they are first created.
Topic: Running your own multi-national corporation (MNC)
– (MNC) company name: D.B Wheels
Please address topics and questions below. Also please use textbook, International Financial Management 13th Edition By Jeff Madura and any other necessary resources.
1. What is the product that you plan to sell?
-Made in USA Automotive Forged Wheels
2. What foreign country do you plan to target?
-Australia
3. How will you sell the product in that country? (i.e., Through a distributor? By mail?)
4. Is there some evidence that consumers in that country would buy this type of product?
-Automotive industry is popular their.
5. Do you need to purchase supplies or to hire labor?
-Yes
6. Will any expenses you incur from producing the product be in dollars or some other currency?
-Dollars
Using the Foreign Exchange Market
1. Explain how you will use the spot market for your business.
2. What bank do you plan to use to exchange the foreign currency received for dollars? What is the bid/ask spread on a recent quotation by that bank? (Call the bank to obtain quotations.)
3. Will you possibly need the forward market? Explain.
