The global financial crisis and multinational corporations | FIN 575 | Colorado State University–Global Campus

 

The global financial crisis started in 2007, producing adverse effects on multinational companies (MNCs). Select one MNC based in the United States or another country. Compare its financial performance from 2007 through June 2008 to its performance from July 2008 (when the international credit crisis intensified) to the present.

In your paper, analyze how and why the international credit crisis affected the MNC’s financial performance. Address the following questions:

  • Was the MNC’s revenue reduced due to weak global economic conditions?
  • Was it adversely affected because of how the international credit crisis affected exchange rates?
  • Was it adversely affected because of problems in obtaining credit?
  • Was it adversely affected because of the kind of international financial investments it had?
  • Was it directly or indirectly affected due to transaction, economic, translation, and country risk exposures?
  • Has the MNC recovered from the international crisis?
  • What is the future outlook of the MNC’s financial performance?

In answering the above questions, your paper must also include the following sections, pertaining to the MNC selected.

  1. Title: The title of your project.
  2. Introduction: Provide a brief background information or history of the MNC selected.
  3. Overview of the Global (International) Credit Crisis: Discuss the causes of global credit crisis as well as how it started and other pertinent information about the crisis.
  4. Adverse Effects of the Credit Crisis on the MNC, as applicable, in terms of:
    1. Revenue: Reduction of revenues due to weak global economic conditions.
    2. Exchange rate effects: Loss incurred due to fluctuations or devaluations of currencies in the MNC’s operating countries.
    3. Credit access: Effects of the global credit crisis on the MNC’s ability to access credit necessary for expansion or operations.
    4. International financial investments: Effects of the global credit crisis on the MNC’s domestic and international investments.
    5. Transaction, economic, translation, and country risk exposures effects: The effects of the global credit crisis on the MNC’s exposures due to transaction, economy, translation, and countries of operations.
  5. Assessment of the MNC’s Current Financial Performance: Include reasons for the current financial performance if the MNC is recovering or has recovered. If no recovery has occurred, include the possible reasons for the lack of recovery.
  6. Assessment of the MNC’s Future Financial Performance: Include an assessment of the MNC’s future financial outlook based on the current financial performance, exposures, and strategies.
  7. Conclusion: Describe the overall conclusion of the effects of global financial crisis and recommend the best direction and strategies for similar future occurrences.
  8. References: Include a list of 5-8 sources cited in your paper. Your references must be credible and be formatted according to the CSU-Global Guide to Writing and APA Requirements (Links to an external site.).
  9. Exhibit(s): Include the financial statements as well as other data used in the financial performance review as exhibit(s) after the reference page.

Some web resources that can aid you include:

Check out current World Economic Outlook data for the MNC’s countries of operations.

Your paper should be 8-10 pages, double-spaced, and well written. Cite 5-8 credible sources in your paper, assure that the formatting complies with the CSU-Global Guide to Writing and APA Requirements (Links to an external site.), and thoroughly proofread and grammar-check your final product. Be sure to examine the Portfolio Project grading rubric to guide your project writing and presentation.

The Portfolio deliverables and the modules in which they are due are the following:

  • Module 2: Submit MNC selection via email to instructor for approval
  • Module 5: Submit a draft of project outline via email to instructor