Multinational Corporations (MNC) are defined as firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. The goal of these managers is to maximize their firm’s value.
The MNC’s objectives are to identify new markets to increase market share, invest excess cash, and ensure the soundness of any host country’s financial market. As the CFO you are asked to analyze the strengths and risks of a potential new market and prepare a report to present to the Board. You will be given 8 questions to answer, and each question will represent a heading in your documents.
MNC to run Oceanfood Sales Inc
- MNC Financing. The MNC will need financing to purchase the product or raw material new supplier.
(a)Discuss the amount of financing needed.
(b) Explain how you arrived at the amount and how it will be spent.
(c) Discuss the different options available for financing.
(d) Will you seek finance in the domestic or foreign country, why, how, and where? Include the impact of interest rates and foreign exchange rates in your answer.
(e) recommend the best option for financing the expansion and explain why?