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Economics for the Global Manager: BUS610 5-6pages Select a U.S. multinational company and respond to the following questions: • In terms of currency denomination, describe how the firm prices its...

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Economics for the Global Manager: BUS610

5-6pages

Select a U.S. multinational company and respond to the following questions:

• In terms of currency denomination, describe how the firm prices its revenues and costs.

• For MNE's with multiple foreign operations, consider any two of those operations and the contribution they are making to the parent firm's profits.

• What means do they use to hedge against exchange rate risk?

• Using this information, what do you think would be the effect of increases/decreases in the dollar’s exchange value on the firm’s profitability?

• Be sure to show all applicable work.

Present your findings as a 5-6 page Word document formatted in APA style.

Submitting your assignment in APA format means, at a minimum, you will need the following:

1. TITLE PAGE. Remember the Running head: AND TITLE IN ALL CAPITALS

2. ABSTRACT. A summary of your paper…not an introduction. Begin writing in third person voice.

3. BODY. The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. The deliverable length of the body of your paper for this assignment is 3-4 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.

4. REFERENCE PAGE. References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper and lower case usage as appropriate for the type of resource used. Remember, the Reference Page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

Answered Same Day Dec 25, 2021

Solution

Robert answered on Dec 25 2021
100 Votes
28679.docx.docx
1
ECONOMICS FOR THE GLOBAL MANAGER
IBM Corporation


2
ABSTRACT
IBM (International Business Machines Corporation)
About the economic status of the International Business Machines Corporation is discussed in
this assignment. It is a known American multinational technology and consulting corporation.
IBM has its headquarters in Armonk, New York, United States. IBM, is known for
manufacturing and marketing computer hardware and software, and it also offers for the
infrastructure, hosting and consulting services in the areas ranging from nanotechnology to
mainframe computers (Dirks & Constantin, 2010).
✵ In terms of cu
ency denomination, description about how the firm prices its
evenues and costs?
IBM Corporation consists of operations all across the world. Similarly, it consists of various
corporations of business in India too and they have the form of development centers that are
offshore in relation to information technology services (Rometty, 2013). The earnings or the
costs of the operations of IBM constructed in India are adjusted in accordance with GAAP
(Generally accepted accounting practices) which is accepted standardly all over the world by all
the US and global companies, instead of according to the accounting practices which are local. In
fact this practice makes the corporation ensure of the consistency in accounting with the
operations set up at global level. The denomination of the cu
ency is in US dollars in order to
ensure the consistent profit. (Dirks & Constantin, 2010).
✵ For MNE's with multiple foreign operations, take an operation and tell about their
helpings and benefits they are giving or offering to the International Business
Machines Corporation which is actually the parent firm?
IBM's Development Centers that have been established by the American multinational
corporation in India, are heavily and greatly contributing towards the parent firm by saving
millions of money in form of salaries. There are many reasons because of which the operations
are shifted to the land of India. The main reason or a fact associated with it is that the manpower
3

of Indian people of IT Sector is best and affordable on cheaper rates in India, which ultimately
constitutes in the great profits to the International Business Machines Corporation (Dirks &
Constantin, 2010). The cost that comes in the operations shifted to India is very low as compared
to the cost for operation in any of the other country. If we take an example of an operation
established in United States of America of similar scale like that in India, then the cost that
would have come out for the operation would be much costlier as compared to the cost of Indian
operations (Dirks...
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