Part II: Choose an international company on which to base your discussion. Find a recent online article about your chosen company that discusses international finance, provides real-world examples, and discusses concepts covered in this unit. Briefly summarize the article, and provide a link.
Reflect on the company, the concepts in the article, and the commonly accepted goal of a multinational corporation to maximize shareholder wealth.
Choose two of the prompts below to address in your discussion.
- Do you believe the company is doing a good job of shareholder wealth maximization? Why, or why not?
- Does the company you have chosen to study have any additional goals, besides maximizing shareholder wealth?
- What theory of international expansion did your company most likely have as a rationale for expanding internationally?
- Was the decision to expand internationally likely based on one theory or a combination of theories?
- What method of business does your company use to conduct international business? Why?
- Is there another alternative form of conducting business that might have worked for your company?
Suggested search terms are listed below:
- repatriated foreign earnings,
- country risk,
- direct foreign investment,
- joint venture,
- international licensing,
- multinational corporation,
- finance risk,
- balance of trade,
- international trade,
- currency effects,
- international capital flows,
- U.S. exports, and
- U.S. imports.