international finance finc 420

International Finance – FINC-420

Part One

Length – 1,000 to 1,500 words plus reference page (3 to 5 references)

Consider an investment in an international venture. Be specific with your investment (product, service, etc.). Identify the advantages and disadvantages of this investment based upon the following:

• Forecasting the foreign currency exchange rate  

• Interest rate parity and forecasting

• Foreign investment policies

• Government limitations on foreign investments

• Trade regulations and policies

• International finance regulations  

  Part Two Additional 500 words

  Additionally, identify the advantages and disadvantages of this investment based on the capital structure of the firm. 

  Entire project should be 1,700 words to 2,000 words

  Outline to consider –

  The purpose of this outline is to describe the factors that influence investments in an international venture. The investment chosen is the PlayStation Console from Sony Inc.

  Introduction

  ·    Brief history of product

  ·    Describe the challenges and possibilities of international sales

  Forecasting the Foreign Currency Exchange rate

  ·    Explain the risk factors involved in foreign currency fluctuating

  o  Short term

  o  Long term

  ·    Describe the actions that the company can take to buffer the risk

  ·    Describe why companies are successful despite fluctuating exchange rates

  Interest Rate Parity and forecasting

  ·    Describe the influence of interest rates on international business

  o  Short term

  o  Long term

  ·    Explain how interest rate Parity connects with currency exchange rates

  ·    Describe how this helps or hurts the investment venture

  Foreign Investment Policies

  ·    Describe the foreign investment policies of both the host country and satellite countries

  ·    Explain the added restrictions that investors face when investing internationally

  ·    Explain the added actions companies must perform to hold to policy

  Government Limitations on Foreign Investments

  ·    Address how each country can have added restrictions on foreign investment to ensure sovereignty

  ·    Explain how this effect the PlayStation console investment

  Trade Regulations and Policies

  ·    Describe other regulations and policies made between countries and organizations such as the World Trade Organization

  ·    Explain the effects they have on the investment

  International Finance Regulations

  ·    Describe the finance regulations set down by international organizations

  ·    Address how these regulations limits and protects international investments

  Conclusion

·    Summarize how all the above factors tie into the PlayStation venture and how these factor play a big part in the venture international success

Final 4 and 5.docx