How can firm lower its debt costs by tapping global credit

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Assignment: Term Project

Throughout the chapters 1-4 of this text you will be exposed to many examples of real-world companies to help illustrate how the concepts that you are learning in each chapter can be applied to real business situations. The paper at the end of every chapter consist of:

Explore Your Own Case in Point: enhancing your understanding of your company of choice;

The objective of this research paper is to enable you to conduct an independent analysis of a large company (e.g., a Fortune 500 company). Select a company that you admire, a company that intrigues you, a company that you would like to work for after graduation, or a company that you've always wanted to know more about. Select a company listed in a major stock exchange like London, New York, Tokyo, Shanghai, Hong Kong, Singapore, Bombay, Frankfurt, or Paris so that various types of information (financial or otherwise) are readily available. Each chapter focuses on a specific topic, and the end-of-chapter questions will encourage you to analyze how that particular topic relates to your company. By the time you have completed the term project you will have learned a great deal about your chosen company.

Explore Your Own Case in Point

Answer the following questions about your favorite company.

Chapter 1

1) Identify three major countries with which your chosen company operates. Preferably, these three countries are in different continents.

2) Are these three countries members of the IMF, the World Bank, and WTO? Do you believe that these three countries actively follow guidelines of these three major international institutions?

3) Compare the institutional structure of these three countries to determine if they promote globalization, that is,

(a) are their political institutions transparent? and
(b) do they have a functioning judiciary system?

4) Do you believe that the three countries under consideration practice policies that promote globalization? For example, what are those countries' policies toward

(a) governance,
(b) competitive markets,
(c) property rights, and
(d) corruption?

Chapter 2

1) Determine whether your company is a producer of goods or services. What are the major products and/or services provided by your company? Are those outputs sold only domestically or are they also exported?

2) If some or all of the output is exported, how much of it is exported? To where are they exported, and why?

3) Do these products and services face tariff or nontariff barriers in the target export markets? What are the tariff rates or nontariff barriers imposed on these items?

4) Does your chosen company fall within the framework of "managed trade" in the export market? If so, on what basis? How is the company trying to overcome this challenge?

Chapter 3

1) Identify regional trading blocs with which your chosen company operates. Identify the benefits that your company gains because it is part of those trading blocs. Is your company taking advantage of the situation?

2) Which trading bloc is most attractive for your company, and why? Explain the importance of that bloc in terms of economic geography (i.e., business density, distance and infrastructure, and intra-regional trade barriers).

3) If you could advise your company about the benefits of regional trading blocs, which trading bloc would you recommend that the company consider next? Why?

4) Would your company be better off under a system of multilateral trade liberalization like the WTO or with bilateral or regional trading blocs?

Chapter 4

1) Volatile currency movements can have important affects on your company. Historically speaking, were there any currency crises in different countries that would have affected your company's costs or revenues? What about the recent 2008 and 2009 global economic crisis period?

2) How can your firm lower its debt costs by tapping global credit markets in the future? Will it cost less to borrow from low interest rate countries?

4) How does purchasing power parity affect your firm's purchases of goods and services from other countries? Will it cost less to buy identical supplies from other countries that have lower prices?

Requirements

- Term Project: Part One : You are required to select a company that you admire, a company that you would like to work for after graduation, or a company that you are interested in. Each chapter focuses on a specific topic and you will analyze how that particular topic relates to your company. By the chapter 5 you will have learnt a great deal about your chosen company. Your Research Paper is an individual research project. Details as follow:

- Research paper should be 4-5 pages, double-spaced, APA citation format

- Paper should have a Title Page, Abstract, and Reference (not included in the body paper)

- The research paper instructions require submission through safe-assign, then you must comply with the submission guidelines AND bring in a hard copy of the assignment to class and the SafeAssign report.

- There will also be a presentation of your paper.

Reference no: EM131677554

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