Tackling the International Financial Management Coursework

Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

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Guide to Tackling the International Financial Management Coursework

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Step 1: Understand the Assignment Requirements

The task asks you to choose a Multinational Enterprise (MNE) listed on a recognized stock exchange, and you need to critically analyze two developments in the international financial environment that have impacted the company’s performance. Then, you’ll need to discuss elements of the company’s financial and/or risk management strategy. This assignment is divided into two parts, each requiring detailed analysis.

Key steps in your approach:

• Choose a company listed on an international stock exchange.
• Identify two significant international financial developments that have affected the company’s performance recently.
• Analyze how these developments impact the company in the short-term and near future.
• Evaluate the company’s financial and risk management strategy.

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Step 2: Choosing a Multinational Enterprise (MNE)

1. Pick a Relevant Company:
   • Choose an MNE listed on a major stock exchange (London, New York, Paris, etc.).
   • Examples: Apple, Toyota, Nestlé, BP, Tesla, Coca-Cola, or Amazon.
2. Research the Company:
   • Gather recent financial reports and news articles.
   • Look at the company’s performance in the context of the global financial environment.

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Step 3: Part a – Critically Discuss Two Developments in the International Financial Environment

1. Research International Financial Developments:
   • Developments could include:
     • Global economic shifts: Recession, growth in emerging markets, etc.
     • Exchange rate fluctuations: How currency changes have impacted profits or costs.
     • Trade policies or tariffs: Effects of tariffs, trade wars, or free trade agreements.
     • Interest rates: How central bank rate changes impact borrowing or investment.
     • Geopolitical tensions: Impact of international conflicts, sanctions, or political instability.
     • Technological advancements: Innovations in financial tech or digital currency.
2. Select Two Developments:
   • Pick developments most relevant to your MNE’s industry and operations.
   • Example: Apple – Discuss how US-China trade tensions (tariffs, trade policies) and the global chip shortage have impacted its operations.
3. Critically Analyze the Impact:
   • Short-term impact: How have these developments affected the company’s recent financial performance?
   • Near future impact: How will these developments continue to affect the company going forward? What strategic actions may the company need to take?

   Key points to cover:

   • Financial implications (profits, costs, investments).
   • Operational effects (production, supply chain, markets).
   • Strategic responses (adjustments to policies, changes in operations).

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Step 4: Part b – Analyze the MNE’s International Financial/Risk Management Strategy

1. Research the Company’s Financial and Risk Management Strategy:
   • Focus on how the company manages financial risks like currency risk, interest rate risk, credit risk, or commodity price fluctuations.
   • Investigate the company’s international financial management strategies, such as:
     • Hedging strategies: Use of financial instruments like futures, options, or forward contracts to mitigate risks.
     • Foreign exchange management: How they manage currency fluctuations in international markets.
     • Diversification: How the company diversifies investments and operations internationally to mitigate risks.
     • Global financing: How they raise capital (e.g., foreign bonds, international equity).
     • Mergers and Acquisitions (M&A): How M&A strategies fit within the financial management framework.
2. Discuss the Key Elements of the Strategy:
   • Financial Hedging: Does the company use hedging to protect against currency or interest rate fluctuations? How effective has this been?
   • Risk Management: How does the company assess and mitigate risk in international markets (e.g., political risk, exchange rate fluctuations)?
   • Capital Structure: Analyze how the company manages its international debt and equity. Does it rely on foreign debt or equity?
   • Treasury Operations: How does the company handle its cash management and liquidity on a global scale?
3. Example of Company Strategy:
   • For Apple: You could discuss their hedging strategies for dealing with foreign currency risk due to their global revenue streams.
   • For Toyota: You might analyze their approach to managing risks in global supply chains and fluctuations in commodity prices.

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Step 5: Structuring Your Response

Your response should have the following structure:

Introduction (150-200 words)

• Briefly introduce the MNE you have chosen and explain why it’s relevant to the study of international financial management.
• Provide a snapshot of the global financial environment and how it influences business performance.

Part a: Developments in the International Financial Environment (400-500 words)

• Identify and critically analyze the two developments.
• Discuss how these developments have affected the MNE’s recent performance.
• Analyze the potential future impact of these developments.

Part b: International Financial and Risk Management Strategy (400-500 words)

• Evaluate the MNE’s international financial strategy.
• Discuss the key elements of its risk management strategy.
• Analyze how these strategies help the company navigate global financial challenges.

Conclusion (100-150 words)

• Summarize the key findings from your analysis.
• Reflect on how the MNE’s financial strategies align with global trends and challenges.
• Briefly suggest possible future directions for the company in managing its finances and risks.

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Step 6: Research and References

Make sure you use reliable sources such as:

• Company annual reports (available on the company’s website).
• Financial news sources like Bloomberg, Reuters, or the Financial Times.
• Industry reports from reputable sources (e.g., Deloitte, PwC).
• Academic journal articles on international finance and risk management.

Use Harvard referencing to cite your sources correctly. You should have at least six references.

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Step 7: Writing and Proofreading

1. Write the Draft: Follow the structure outlined above. Ensure your writing is clear, concise, and well-supported with evidence.
2. Review and Revise: After writing, take time to revise and ensure:
   • Clarity of thought.
   • Logical flow of ideas.
   • Proper referencing.
   • Grammar and spelling accuracy.
3. Check Word Count: The word limit for this assessment is around 1,000 words. Aim to stay within +/- 10%.

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Step 8: Final Submission

Once you’ve written and revised your work, submit it by the specified deadline. You should have a comprehensive and critical analysis of your chosen MNE’s financial performance and strategies, grounded in the context of international finance.