Prior to beginning work on this assignment, read Picking Cherries or Lemons: A Unified Theory of Cross‐Border Mergers and Acquisitions (Links to an external site.), watch What Is Strategy? Why It’s More Than a To-Do List (Links to an external site.), review 13 Businesses With Brilliant Global Marketing Strategies (Links to an external site.), and review United States Rates & Bonds (Links to an external site.). In prior weeks, you learned about finance and strategy. This week you will put it all together. Using a company expanding into the international market and a country of your choice to expand into, you will complete a comprehensive recommendation to company executives either recommending or forgoing expansion into your selected country. Conduct significant research using at least five sources other than the textbook to support your analysis. Learn how to quickly research a company’s operations and financial information with the following web page, Using EDGAR to Research Investments (Links to an external site.). Review the current financial statements of the company through the web pages, Yahoo! Finance (Links to an external site.) or EDGAR Company Filings (Links to an external site.) database in the Filings and Forms page. FreeEDGAR (Links to an external site.) is also a convenient source for real annual and quarterly reports (called 10-Ks and 10-Qs in EDGAR Speak). You may prefer the SEC’s original EDGAR Company Filings (Links to an external site.), which is a little less user-friendly, but does not require registration. Yahoo! Finance (Links to an external site.) has summaries of annual and quarterly reports, plus key ratios and much more. You can access the financial statements by going to the Yahoo! Finance (Links to an external site.) web page, typing in the company name in the top search bar, and then clicking on the “Financials” tab. Visit the United States Rates & Bonds (Links to an external site.) web page, and click on a country to review its interest rates. Select a country (other than the United States) for your company to expand into. In your paper, Introduce the company and describe their rationale for expansion into global markets. Summarize the culture and financial climate of the country you selected. Describe your country’s foreign exchange rates and how those rates could impact the company’s future financial performance. Be sure to address the following: Interest rates Balance of payments Government policies Other factors such as taxes and tariffs. Describe how the company needs to manage foreign exchange risk. Analyze any potential political risk and its impact to the financials. Summarize why it would be favorable or unfavorable for the company to expand in that region.
