Scholarly Activity Unit VI and Case Study
Order Description
Complete both parts of this assignment and submit as a single document.
MBA 6601, International Business 5
Part One
Your company is deciding to expand to the following countries, and you and two other managers will have to visit these countries to set up operations. You have $1,500.00 to convert in each currency. Copy and paste this table into a new document and compute the following:
Country/currency
USD value/rate (as of 08/14)
Exchange amount
Japanese yen
$102.28
Euro
$0.75
British pound
$0.60
Utilizing the same exchange rate, while you are visiting each of these countries, you have to buy supplies/equipment for your operations; you want to determine what it is costing you in U.S. dollars. Please compute the following:
Japanese yen
Computer (¥167,000.00)
$
Euro
Desks/chairs (€1,125.00)
$
British pounds
Printer (£575.00)
$
Part Two
Respond to the following questions. Not counting Part One
1. Within the past decade, the IMF has provided financial assistance (bailout) to Greece (2010, 1st quarter), Iceland (2008, 4th quarter), Ukraine (2014, 2nd quarter), and Hungary (2008, 4th quarter). Describe the recovery process in each country as a result of this assistance. Also determine whether or not there was an increase/decrease in:
? GDP,
? inflation, and
? unemploymen
Second Page, please title.
Unit VII Case Study
Complete both parts of this assignment and submit as a single document.
Part One
Based upon recording balance of payment (BOP) transactions, determine whether or not the following is a debit, credit, or no entry to the U.S. Balance of Payment statement. Also determine what chart of account is affected (i.e., CA, KA, or OSB):
1. U.S. resident purchases Mercedes Benz C230,
2. U.S. resident purchases Chevelot Impala,
3. foreigner purchases GE dryer,
4. U.S. resident purchases UK stock, and
5. U.S. resident borrows funds from British broker to purchase stock.
Part Two
Read the case study, pp. 759-762, “H&M: The Challenges of Global Expansion and the Move to Adopt International Financial Reporting Standards.” Answer questions 19-3 and 19-4 at the end of the case study and the questions listed below. Your response for all four questions should follow APA style guidelines.
? What type of exposure could the CFO of H&M in the U.S. be subjected to since H&M is based in Sweden and the financial statements are prepared according to IFRS?
? Payments or liabilities may also be subjected to exposure. Explain the operational hedging strategies that may offset exposure.
Course Textbook
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2015). International business: Environments and operations (15th ed.). Upper Saddle River, NJ: Pearson Education.
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