International Finance

MG 760 Spring 2021 Cases

MG 760 International Finance Cases Spring, 2021

All MBA level assignments must be prepared professionally. Students must apply sound thinking and conduct research. This means students should review the Wall Street Journal for information and analysis. An introduction, body and conclusion are required as well as a list of references.

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1. The major world economies are beginning to plan for a time when the corona virus will not impinge on normal business activity. That time may be some months away.

You are employed by a major international company. Its headquarters are in Italy. The company sells its products mainly in the euro zone, but it also has a good presence in the United States.

You have been asked by company management to assess various international finance factors that are expected to affect the company in the next year.

Issues that were discussed in the last management meeting include,

1. Built up demand for products – people unable to make purchases because they were not working or living on unemployment insurance.

2. The likelihood that taxes will rise, perhaps significantly, tamping down consumer demand.

3. Your company makes luxury goods. It has always seen itself as operating in a “special” market. What are the prospects for luxury goods as the pandemic winds down?

Some rules of the road:

1. See what the Wall Street Journal says on these issues. Opinions get old fast and may not have been accurate to begin with.

2. Pay special attention to factors and trends that company management may not have been pursuing over the last year or two.

3. Avoid vague generalizations and opinions. Stay away from blog posts.

4. Do not waste time giving vague, useless advice. For example, “We should do more research and development (R&D).” Or, “We should look for opportunities.” You must give specifics on opportunities and R&D areas.

5. Look for opportunities. This could involve specific new products, new services, new revenue streams, etc.

6. Management expects you to turn in a paper with good support that is clear and specific. Failure to do so may be “career limiting.”

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2. Compare the economies of Sweden and Denmark. Both are in Northern Europe, a part of the world known for wealth and good business prospects. Any MBA student should want to consider the opportunities in these successful economies. Here are a number of topics to explore:

a. Overall size of the economy, GDP, etc.

b. World ranking in key business areas, such as productivity, balance of payments, strength of currency, currency reserves, ranking on business freedom, general honesty of the business community, technological skill, etc.

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3. Compare the economies of South Africa and Vietnam. Both countries are known as “emerging markets.” Both have been emerging for a long time. This is an opportunity to see emerging markets in an objective manner. Identify the two greatest strengths and the two greatest weaknesses of each country’s economy. Give detail. Show that you can analyze a business problem.

Discuss the future prospects of each country as a business manager would evaluate them. How fast will their GDP’s grow? What percentage of people will live in poverty five years from now? In what business areas will they be regarded as leader?

Before completing your paper, review this checklist:

a. Have I provided specific detail on the economies and stayed away from generalizations, such as “They have a lot of xxxx.”

b. Have I avoided personal opinion? Stay away from blogs.

c. Have I avoided giving the history of the country? It is not enough to like a country. Be able to back up your analysis with facts.

d. Have I used and cited the Wall Street Journal?