FN7226 Managing resources in the international business

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Reference no: EM133059422

FN7226 Managing resources in the international business environment - University of East London

Component - Individual Report

Knowledge
Learning Outcome 1: Make informed strategic choices based on an understanding of the financial and economic environment and of key institutions within it
Learning Outcome 2: Determine the likely impact of changes in financial and economic circumstances on organisations and industries with which they are associated

Thinking skills
Learning Outcome 3: Appraise the financial performance and standing of a business or business unit
Learning Outcome 4: Determine the likely impact of changes in financial and economic circumstances on organisations and industries with which they are associated

Subject-based practical skills
Learning Outcome 5: Critique and contribute to project appraisal decisions
Learning Outcome 6: Assess the appropriate means whereby international businesses can raise and manage financial resources

Skills for life and work (general skills)
Learning Outcome 7: Make informed contributions to policy debates within their industry or sector.
Learning Outcome 8: Communicate effectively on financial and economic matters to both expert and non-expert audiences

Question 1

In recent years there has been considerable backlash against globalisation. Critically discuss the causes of this reversal. Highlight a particular challenge and opportunity that globalisation may face in the future, focusing on the implications of the current developments addressing global issue of climate change.

Hint: Students must critically discuss political, economic, environmental and technological arguments incontext of current global economic developments of ‘Net Zero'. (1000 words)

Question 2

You are International Business Manager at a UK based company. Considering high demandyour company plans afull-scaleexpansion. Your companyhas identified USAandEuropeas potential markets. You are requested to analyse both projects and advise.

In considering such large project, you mustwork out the risk of each project, cost of capital and NPV. Allocate discount rate for each project accordingly and justify why you allocated this rate in your discussion. Discuss how international risks can be managed.

Projected cash flows in respective currencies:

Year	Net Cash Flow - USD USA	Net Cash Flow -EUR Europe
0	-20 million	-20 million
1	2 million	2 million
2	4 million	3 million
3	5 million	4 million
4	6 million	8 million
5	8 million	8 million

Instructions:
a. Discuss viability of both projects in today's global business context and allocate discount rate.
b. How much investment is needed for each project and what is the NPV of each project?
c. Discuss your calculations and advise which project should be selected.
d. Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write your proposal to mitigate impact of possible exchange rate fluctuations

Harvard referencing Style

Attachment:- International business environment.rar

Reference no: EM133059422

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