Economics for the global manager
Select a U.S. multinational company, and respond to the following questions:
In terms of currency denomination, describe how the firm prices its revenues and costs.
For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firm’s profits.
What means do they use to hedge against exchange rate risk?
Using this information, what do you think would be the effect of increases or decreases in the dollar’s exchange value on the firm’s profitability?
Be sure to show all applicable work.
Present your findings as a Word document of 7–10 pages formatted in APA style. Include 5–7 academic, peer-reviewed references that are relevant to and support the deliverable.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head AND THE TITLE IN ALL CAPITALS.
Abstract: This is a summary of your paper—not an introduction. Begin writing in third-person voice.
Body: The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3–4 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
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