Critical review of the methods used by GM to mitigate against risks in a multinational context

Type :

Presentation

Pages :

5 pages

Format :

.doc

Published date :

06/04/2008

$ 10.95 Add to cart

Summary :

 
 

Table of Contents Critical review of the methods used by GM to mitigate against risks in a multinational context Table of Contents

 
  1. Introduction
  2. Managing Financial Risk
  3. Transaction Exposure
    1. Currency Forwards
    2. Currency Options
    3. Currency Swaps
  4. Operating Exposure
  5. Translation Exposure
  6. Conclusion

Abstract

General Motors (GM) is one of the 10 largest multinational corporations in the world. Although the organization has enjoyed a considerable amount of success in a multination organization, the reality is that the company has had to take a number of steps to ensure its financial security in the foreign market. Overall, General Motors faces a wide range of threats that could significantly impede the development of the organization. These threats include: transaction exposure, operating exposure and translation exposure. Given that each of these threats could notably impact the ability of the organization to be financially successful, this investigation considers a review of these threats and the specific methods that are currently being utilized to mitigate these threats. Through a careful consideration of what has been written on these issues, a more integral understanding of the financial challenges facing multinational corporations will be elucidated.

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About the author :

pencil image Sunmade A. research
Level :Advanced Study : Accounting School/University : westminster

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