The Global Financial Crisis And Multinational Corporations

Task Description The global financial crisis began in 2007 and created significant challenges for multinational companies (MNCs). Select one MNC based in the United States or another country and analyze the impact of the international credit crisis on its financial performance. Compare the company’s financial performance during: 2007 through June 2008, before the international credit crisis intensified. July 2008 to the present, after the international credit crisis became more severe. Your paper should analyze how and why the international credit crisis affected the selected MNC’s financial performance. Required Analysis Questions Address the following questions in your paper: Was the MNC’s revenue reduced due to weak global economic conditions? Was the MNC adversely affected by the impact of the international credit crisis on exchange rates? Was the MNC adversely affected by difficulties in obtaining credit? Was the MNC adversely affected because of the type of international financial investments it held? Was the MNC affected directly or indirectly due to exposure to: Transaction risk. Economic risk. Translation risk. Country risk. Has the MNC recovered from the international financial crisis? What is the future outlook for the MNC’s financial performance? Required Paper Sections The paper must include the following sections: Title Include: The title of your project. The selected MNC being analyzed. Introduction Provide: A brief background of the selected MNC. The company’s history, operations, and international presence. Relevant information explaining why the MNC is suitable for analysis. Overview of the Global (International) Credit Crisis Discuss: The causes of the global credit crisis. How and when the crisis began. The factors that contributed to the escalation of the crisis. Other relevant information regarding the international financial crisis. Adverse Effects of the Credit Crisis on the MNC Analyze the effects of the global credit crisis on the selected MNC in the following areas: Revenue Discuss: Whether the MNC experienced reduced revenues due to weak global economic conditions. The impact of reduced consumer demand, economic slowdown, or market conditions. Exchange Rate Effects Discuss: Losses or financial impacts caused by currency fluctuations or currency devaluations in countries where the MNC operates. The effect of exchange rate changes on international operations. Credit Access Discuss: How the global credit crisis affected the MNC’s ability to obtain financing. The impact on: Expansion plans. Operations. Investments. Financial stability. International Financial Investments Discuss: The impact of the financial crisis on the MNC’s domestic and international investments. Whether investment strategies contributed to financial challenges or recovery. Transaction, Economic, Translation, and Country Risk Exposure Effects Analyze how the financial crisis affected the MNC’s exposure to: Transaction risk. Economic risk. Translation risk. Country risk related to international operations. Assessment of the MNC’s Current Financial Performance Evaluate the MNC’s current financial condition. Include: Whether the company has recovered from the crisis. Reasons for recovery, if applicable. Possible reasons for continued challenges if recovery has not occurred. Relevant financial performance indicators. Assessment of the MNC’s Future Financial Performance Provide an evaluation of the MNC’s future financial outlook. Discuss: Current financial performance. Risk exposures. Business strategies. Market conditions. Future opportunities and challenges. Conclusion Provide an overall conclusion regarding: The effects of the global financial crisis on the selected MNC. Key lessons learned. Recommended strategies and directions for similar future financial crises. References Requirements: Include 5–8 credible sources cited throughout the paper. References must follow the CSU-Global Guide to Writing and APA Requirements. Sources should be reliable and relevant to the financial analysis. Possible sources include: MNC annual reports. Company financial information. Financial databases. Academic sources. Economic reports. Industry publications. Exhibits Include supporting materials after the reference page. Possible exhibits include: Financial statements. Financial performance data. Charts and tables. Other information used in the financial analysis. Recommended Resources Resources that may assist with the project include: Evaluation of MNC Financial Information Use: The MNC’s official website. Financial websites such as: Yahoo Finance. Google Finance. Reuters. Country Risk Ratings and Analysis Relevant sources include: Moody’s www.moodys.com Standard & Poor’s www.standardsandpoors.com Fitch Ratings www.fitchratings.com Economic Outlook Information Use: International Monetary Fund (IMF) resources: www.imf.org Review current World Economic Outlook data for countries where the MNC operates. Formatting Requirements The paper must: Be 8 pages in length. Be double-spaced. Be well written and professionally organized. Include 5–8 credible sources. Follow the CSU-Global Guide to Writing and APA Requirements. Be thoroughly proofread for grammar, spelling, and clarity. Follow the Portfolio Project grading rubric. Portfolio Project Submission Schedule Module 2 Submit: Selected MNC choice. Email the selection to the instructor for approval. Module 5 Submit: Draft of the project outline. Email the outline to the instructor for review. :::