International Finance Dr. Mohammad Magableh Section 101

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Presentation transcript:

International Finance Dr. Mohammad Magableh Section 101 Bader Al-Hamed/ ID: 200901007 Abdulkreem Al-Eliwi/ ID: 200700740 Choosing an MNC Overseas

Introduction: Our MNC is located in Japan. We have chosen to use the direct foreign investment method for our MNC investment. Our service is to provide the Japanese customers Telecommunications and Information System Services.

Trade Barriers: In our case, trade barriers are not a concern very much, because we used direct foreign investment.

Exchange Rates: Japanese Yen to US Dollar 1/07 1/2008 1/2009 1/2010 1/2011 1/2012 1/2013 1/14

What strategy did we choose to protect our investment? We chose to use the hedging strategy, simply because the American Dollar was depreciating in the straight line trend.

Conclusion: Our MNC is located in Japan. The American Dollar was depreciating and the Japanese Yen was appreciating. Trade barriers for our MNC was a none issue overall.

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