Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the North America region. Examine issues related to foreign exchange management within your multinational corporation.  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. The main foreign currencies that will be used in the business. The foreign exchange exposure of the company and how the company plans to manage this exposure.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
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Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the North America region. Examine issues related to foreign exchange management within your multinational corporation. 

  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. 
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