International Financial Management Full Time 2005 MBA


 


SUMMATIVE ASSIGNMENT


 


 


Assume that you are employed by Vertex-Speed Ltd, a fast growing car


manufacturer based in County Durham, UK. Vertex-Speed has been exporting


“Vertex-Gamma”, a prestigious executive car, to Malaysia and Brazil for the last 10


years. The company is considering establishing a subsidiary to produce similar


quality cars either in Malaysia or in Brazil. The subsidiary is expected to sell its


products in the host country as well as in the neighboring countries of the host. The


Managing Director of Vertex-Speed is aware that you have recently completed an


MBA from Durham Business School with an in-depth knowledge in international


financial management. Therefore, she approaches you for your advice. You are


required to prepare a report comparing the risk factors that Vertex-Speed may


encounter in these countries and suggest the best alternative. In your report you


should also include the measures that Vertex-Speed should take in managing the


risk associated with the suggested host country.


 


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Performance in the summative assessment for this module is judged against the following


criteria:


 


· Relevance to question


· Structure/presentation & clarity of writing


· Scope & relevance of literature review


· Rigor of argument


· Evidence of understanding


· Conclusions/Recommendations


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Approximate  context?


 


Introduction


Automobile industry


Risk assessment in Brazil


Risk assessment in Malaysia


Conclusion and Recommendations


 


We have to analyze the systematic risk of the country, country risk and financial risk, and also see if the region has some risk or not, all these should be taken into account.


 


 


Like:


Exchange rate, trends for some years


Bureaucracy


Corruption


Consumer attitude


 


 


We have to suggest by the end whish country is best to establish subsidiary in.


We have to use Treasury bonds of the government (macro economic risks)


Find the Market return


Fixed deposit Bank rate can be used


How can we adjust risk with the discount rate?


Some assumptions are good



Credit:ivythesis.typepad.com



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