1. Article Critique (Min: 2 Pages)
For this assignment, choose a peer-reviewed article to critique related to International Equity Financing. Use a source that contains peer-reviewed articles. The purpose of this assignment is for you to practice reviewing articles that contribute to the industry. The authors of these articles are researchers and professionals who have shared or experimented with ideas that demonstrate potential to improve the industry. As a professional in the industry, it is in your best interest to review the literature and
trends. This provides you with the opportunity to read about what was successful and how it was accomplished. Plus, it allows you to analyze what was unsuccessful, how you can improve it, or at least how you can avoid repeating the mistakes of others. Use these skills to contribute to Research Papers and other scholarly writings. If you have not already, hopefully, you will contribute to the industry by publishing an article and sharing with your community of peers.
As you read the article you choose for this assignment, consider the following questions: How could the topic of this article apply to your personal or professional life? How could it apply to an organization you have observed?
The article you choose must meet the following requirements:
· Be peer reviewed
· Relate to the concepts within this course
· Be at least ten pages in length
The writing you submit must meet the following requirements:
· Be at least two pages
· Identify the main topic/question
· Identify the author’s intended audience
· Critique the article and share your thoughts—what appears to be valid and invalid?
· Do you agree with the author’s assertions? Why, or why not?
Try to find an article that can tie into your portfolio project for the course. Further information and research on important concepts and topics will allow you to attain a better analysis of the MNC for your portfolio project.
Format your Article Critique using APA style. Use your own words, and include citations and references as needed to avoid plagiarism.
2. Case Study (Min: 3 Pages)
Sabre Computer Corporation Case Study (Cost of Capital)
Sabre Computer Corporation is a U.S.-based company that plans to participate in joint ventures in Mexico and in Hungary. Each joint venture involves the development of a small subsidiary that helps produce computers. Sabre’s main contributions are the technology and a few key computer components used in the production process. The joint venture in Mexico specifies joint production of computers with a Mexican company owned by the government. The computers have already been ordered by educational institutions and government agencies throughout Mexico. Sabre has a contract to
sell all the computers it produces in Mexico to these institutions and agencies at a price that is tied to inflation. Given the very high and volatile inflation levels in Mexico, Sabre wanted to ensure that the contracted price would adjust to cover rising costs over time. The venture will require a temporary transfer of several managers to Mexico plus the manufacturing of key computer components in a leased Mexican plant. Most of these costs will be incurred in Mexico and will therefore require payment in pesos. Sabre will receive 30 percent of the revenue generated (in pesos) from computer sales. The
Mexican partner will receive the remainder. The joint venture in Hungary specifies joint production of personal computers with a Hungarian computer manufacturer. The computers will then be marketed to consumers throughout Eastern Europe. Similar computers are produced by some competitors, but Sabre believes it can penetrate these markets because its products will be competitively priced. Although the economies of the Eastern European countries are expected to be somewhat stagnant, demand for personal computers is reasonably strong. The computers will be priced in Hungary’s currency, the forint, and Sabre will receive 30 percent of the revenue generated from sales.
Guidelines for Case Study : For this assignment you are to evaluate the mini case study. The central issue in your analysis should be to describe what the case tells us about the theory and practice of International Finance Management. In analyzing the case, you should draw upon class readings, internet resources as well as personal experiences that may be relevant. Some general questions that you may want to consider include the following:
· What are the issues?
· Who are the actors?
· What are the organizational forces?
· What are the external forces?
· What theoretical perspectives or models help you understand what happened in the case? How?
· What does the case tell us about: The environment within which International Finance occurs? The nature of the
International Finance Management system and the policy making process? The decision making process?
Leadership and management? Administrative ethics?
· What recommendations would I make?
· How would I propose to do things differently?
Once you have thoroughly analyzed the Case Study, you should compose a minimum two- page response to the following questions:
1. What are the organizational and external forces at work within this case?
2. Explain the environment within which this International Finance situation is occurring.
3. How might Sabre Computer Corporation finance their exports? Which methods of payments would be most beneficial for the organization?
Within the confines of this case study, describe what occurs with the management of accounts during international cash transfers involving network capital.