Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Also explain how can we mitigate foreign exchange risk in these countries. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the operating environment of the MNC and howthese issues affect the company’s foreign currency exposure.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter1: Multinational Financial Management: An Overview
Section: Chapter Questions
Problem 1IEE
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Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Also explain how can we mitigate foreign exchange risk in these countries.

You are asked to simulate your own multinational corporation (MNC).
You are required to justify the form of their own MNC, based in the Caribbean, which trades
with three countries outside of the North America region. Students will then examine issues related
to foreign exchange management within their multinational corporation.
This group assignment should address the following:
1. The type of MNC, whether franchising, licensing, the exportation of a product sold
through a distributor, etc. The rationale behind using this form of MNC should also be
given.
2. The main foreign currencies that will be used in the business.
3. The foreign exchange exposure of the company and how the company plans to manage
this exposure.
4. Any current financial issues that affect the operating environment of the MNC and how
these issues affect the company’s foreign currency exposure.

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