Global Finance Conduct an online search to review a recent annual report (10-K) of the operations...

Question

Global Finance

Conduct an online search to review a recent annual report (10-K) of the operations of any publicly traded U.S. based Multinational corporations (MNC). Write a paragraph in which you describe how the MNC's cash flows are exposed to the international environment.

Is the MNC you selected most exposed to a particular currency?
If so, describe how would depreciation of that currency against the dollar affect the value of that MNC.
Is the MNC you selected exposed to the economic conditions of the particular country?
If so, describe how a change in the conditions of that country could adversely affect the MNC's cash flows.
How is the MNC affected by the current public health crisis?

Also:

· Posting should be substantive: can be a comment or a question that enhances the discussion.

· Posting should show enough evidence of having read the paragraph.

· Posting should be constructive and differences of opinion expressed in a collegial manner.

Tanmoy · Accepted Answer

Global Finance
Is the MNC you selected most exposed to a particular currency?
We have chosen Walmart as the US based MNC. Walmart does not accept foreign currencies but allows customers to send and receive currency in US dollars to over 200 countries. This is done using the various exchange counters which are known as MoneyGram and Western Union services (Query Sprout, 2021). 
If so, describe how would depreciation of that currency against the dollar affect the value of that MNC.
If there is a depreciation in the dollar amount then there is a fall in the exchange rate. As a result of this there is also a fall in the relative price of domestic goods and services. On the other hand, there is an increase in the price of foreign goods and services. Hence, for Walmart due to depreciation in a foreign currency against the dollar value there will be an advantage for Walmart. Walmart will take advantage of this situation and will earn more (Sameer Ranjan, 2018).

Global Finance Conduct an online search to review a recent annual report (10-K) of the operations of any publicly traded U.S. based Multinational corporations (MNC). Write a paragraph in which you...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment