Terminal Course Objectives:
· Assess different types of foreign exchange exposure faced by the MNC. Identification and measurement of these risks
· Evaluate the forces of globalization and its implications for the multinational firm.
· Evaluate the structure of international financial markets and institutions and the range of instruments traded therein.
· Interpret the operation of the international financial system, its current state, and challenges for the future
This assignment has 3 parts:
1. Review the Terminal Course Objectives. How will accomplishing these objectives support your success in management? What risks or challenges might a manager encounter if they have not mastered these objectives? Explain.
2. What is the purpose of the WTO and G8? Do you believe they are beneficial to Multi-National Companies (MNCs)?
3. Why do you believe it is important to understand the international monetary system?
Deliverable Length: 250 words (minimum) per reply
Understanding the relationship of the MNC is vital to accomplishing my management objection which is the path to creating my career and success in management. As a manger I would need to understand how the MNC approach is enforced and the risk associated with changes are made within some enterprises and their operations objectives. By using the resources provided and continued research, I will have many opportunities to evaluate the situation at hand which will be challenging at some points of operations when making decision. Some risk and challenges that I feel could harm my career are late projects, overspent budgets, unhappy clients and reputational damage. As a result, all the risk and challenges mention could harm my management career.
The purpose of the WTO is to ensure commences global trades are moves without problems or difficulties, without restriction or interference and in a way that can be predicted to be delivered as expected.
The G8 is an annual meeting between eight of the most powerful leaders in our countries and is held annually.
Due to the need for fare trades and money laundering it is vital that the importance of the monetary system is research, evaluated and studied. This system is the study of past activities around our country and the results of current and future changes.
Understanding international trade and globalization is relevant to management because it affects the bottom line of many companies. The first challenge that comes to mind is that many organizations move production overseas for financial reasons, however it takes away from American jobs and other resources. This type of move may also very well come with risk, because of any implications that can arise if management is not operating on-site.
The World Trade Organization’s purpose is to ensure that there is regulation between international trading. It is not a perfect system but there are many involved to ensure it’s fairness. Like WTO, the G8 brings the most powerful eight countries to an annual meeting to problem solve and future planning.
I believe that the G8 is a great concept and was established with the best of intentions, however it should include every country, not just a selected few. I also don’t see how on such a large scale can anything be accomplished by just meeting once a year for two days with so many differences. The WTO is also a good idea and is necessary group but it needs to be more transparent and not seem to show bias and adhere to its own regulations .
By understanding and accomplishing the objective stated will help me if I would decide to get a management position in a company the has assets in other countries. It will also come in use if I would decide to take my own company to the international level. These countries may differ in customs, values, and currency. As a manager if I do not master these objectives it could cause the company failing to be all on me.
The World Trade Organization (WTO) is an international institute that oversee global trade. Its top priority is to make sure trade is flowing smoothly. It also attempts to predict things that could happen before it does to ensure the positive flow of trade. When making new laws or revising old laws a vote is taken and the majority wins. No one person is solely in charge of the final decision. Group of 8 or G8 is group of the largest developed economies. These countries are considered the industries pacesetter. United States, United Kingdom, Canada, Germany, Japan, Italy, France, and Russia makes up the G8.
A multination corporation is a company that has other assets in another country other than its own domestic one. As with anything else there is advantages and disadvantages. Some would say that having other locations in a different country takes away jobs from your market. While that is true, I feel that the advantages of a multinational corporation out ways the disadvantages. For example, having a multinational corporation will allow the company to expand beyond their own boarders, learn new a culture, and possibly bring new products that the company would not other wise have thought of. Along with running a multinational corporation you need to understand the international monetary system. This is essential because foreign currency differ from US currency. To do business with a foreign country you need to know how to exchange money from one form of currency to another. If the company does not know how to do this the business will fail.