Reference no: EM133186480

1. You've been tasked with obtaining financing for your subsidiary in Brazil. Of all the sources of financing you've learned about in this chapter, which sources of financing would you explore? Would you consider equity financing in the Brazilian stock exchange? What factors would you research before making this financing decision?

2. Go to https://www.oanda.com to check the current value of the US dollar relative to the euro. Compare this exchange rate to the exchange rate one year ago. Imagine that you are an executive in a multinational firm that will be manufacturing components at a Chinese subsidiary and selling those components to a US subsidiary that will assemble the components into finished goods and then sell them to a Portuguese subsidiary to sell to European markets. What actions would you take to mitigate currency risk?

3. You are the treasury operations manager for a multinational company. You've been tasked with recommending a cash-investment strategy that will maximize a return on the cash and maintain the liquidity needed for emergencies. Using what you've learned about centralized depositories, multilateral netting, fronting loans, tax havens, and transnational investment, what recommendations would you make?

Reference: International Business Book pdf. Ch 15: Understanding the Roles of Finance and Accounting in Global Competitive Advantage, p. 684-730