01 Mar Review the Course Objectives, accessed by clicking on the Syllabus? tab on the left-hand side of the page, then scroll down to the Course Objectives?. How will ?????accomplishing these o
This assignment has 3 parts:
- Review the Course Objectives, accessed by clicking on the “Syllabus” tab on the left-hand side of the page, then scroll down to the “Course Objectives”. How will accomplishing these objectives support your success in management? What risks or challenges might a manager encounter if they have not mastered these objectives? Explain.
- What is the purpose of the WTO and G8? Do you believe they are beneficial to Multi-National Companies (MNCs)?
- Why do you believe it is important to understand the international monetary system?
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings. (I NEED 2 REPSPONSE FOR BOTH ATTACHED PEERS) 75 WORDS MINIMUM FOR BOTH RESPOONSES. SEE ATTACHMENT
In reviewing the Terminal courses objectives, such as Foreign Exchange Risk, International Monetary Systems, capital budgeting, and Adjustment Risk, I must admit that I am unaware of the information that would make for successful management. I suppose the many risks or challenges managers may face if not privy to the things that come along with Global Financial Management are the inability to make financial decisions and navigate the challenges of the global economy.
My understanding of WTO and G8 (only because I recently researched) is that the World Trade Organization deals with the rules of trade between nations. Founded in January 1995, this organization mainly deals with goods and services trade and is the largest reform of international trade (World Trade, Organization, 2022). In the Group of Eight (G8), eight highly industrialized nations meet annually to foster consensus on global issues such as economic growth, crisis management, global security, energy, and terrorism. They include France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia (Laub, 2014). I'm learning that both the WTO and G8 ensure a smooth, predictable, and free flow of trade. However, that's just half of the story. It has long been known that the WTO is unfair to poor countries' governments and favors rich nations.
Now than ever, it's imperative to understand the international monetary system because every day creates an opportunity for the business world to expand outside of a restricted segment. Without a thorough understanding of the rules, insistences that facilitate international trade, and general differences between nations' currencies, global business is not possible.
Laub, Z. (2014). The Group of Eight (G8) Industrialized Nations. [online] Council on Foreign Relations. Available at: https://www.cfr.org/backgrounder/group-eight-g8-industrialized-nations#:~:text=The%20Group%20of%20Eight%20(G8)%20refers%20to%20the%20group%20of [Accessed 22 Feb. 2023].
World trade organization (2022). World Trade Organization – Global trade. [online] Wto.org. Available at: https://www.wto.org/.
Global Financial Management: FIN630
Unit 1 Discussion Board – Part 1
After reading the course objectives, I would have to say that understanding and accomplishing them will support my success in management in many of ways. The first being to get a better understanding of global finance in general. Achieved my bachelor’s from AIU in Business Admin over 10 years ago so it has been quite a while since covering any material in the subject. Feeling like I have a lot to learn. I’m looking forward to learning more about the three types of exposure: transaction, economic, and translation (McGraw Hill, page 211).
The subject of exposure reminds me of the movie “The Big Short,” from the year 2015. That’s when it really started making sense to me. That’s when I fully understand exposure, and how big of a disadvantage the banks put themselves in for approving risky sub-prime loans that eventually went into default due to adjusting mortgage rates. When the interest rates adjusted up the home owner could no longer afford to make the mortgage payment and defaulted on the loans, most losing their property back to the banks. The movie goes on to show how the federal government bailed out all the banks anyway. It was basically about the 2008 housing market crash her in the United States.
Understanding all of these types of risks will assist in better decision making in my career by being more well rounded in the subject of global finance. It puts you in a better position to even be able to hold a conversation with some regarding the subject. If your current job doesn’t require the knowledge, it’s still great to have because the whole goal is to improve yourself and your career.
Part 2 & 3 to follow in week two…
McGraw Hill. Nineth edition (2021). International Financial Management, page 211