Short Title: The Financial and Economic Environment of International Business

DirecTV is one of the largest providers of satellite television in the world. It is a U.S.-based corporation but has subsidiaries throughout Latin America in countries such as Argentina, Chile, and Venezuela.

Latin America is volatile part of the world with issues of political strife and often-extreme economic fluctuations. Inflation and currency exchange rates are often especially volatile in this part of the world. DirecTV Latin America even filed for bankruptcy protection in 2003 due to its many woes from the unrest and economic hardship in this part of the world. The company is currently doing much better but still faces a lot of risks.

Using the online library, do some research on DirecTV and its operations in Latin America. Here are some articles to get you started:

Ramachandran, S. (Feb. 14, 2013). DirecTV Profit Rises on Latin America Growth. Wall Street Journal (Online), New York, NY [Available in ProQuest]

Yao, D. (Feb 25, 2014). DIRECTV faces currency devaluation risks in Venezuela. SNL Kagan Media & Communications Report [Available in ProQuest]

Assignment:

After researching DirecTV and reviewing the background materials on international financial management, write a 4- to 5-page paper addressing the following questions:

1. What major political events in Latin America are the biggest threat to DirecTV’s

financial performance? What steps can be taken to protect against these risks?

2. What major international financial or economic risks in Latin American economies should DirecTV’s financial management team worry about the most? What can they do to hedge against these risks?

3. What major business risk from international competitors do you think DirecTV might face? What can it do to protect against these risks?

Using the online library, do some research on DirecTV and its operations in Latin America. Here are a some articles to get you started:

Ramachandran, S. (Feb. 14, 2013). DirecTV Profit Rises on Latin America Growth. Wall Street Journal (Online), New York, NY [Available in ProQuest]

Yao, D. (Feb 25, 2014). DIRECTV faces currency devaluation risks in Venezuela. SNL Kagan Media & Communications Report [Available in ProQuest]

Assignment is in the attachment:

Short Title: The Financial and Economic Environment of International Business

Do some research on the currency and banking situation within the Philippines.

We normally think of currency and banking risks as being something confined to third-world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even the wealthy, developed countries are without risks on the financial side. So it is important for any company doing business in the Philippines to carefully consider the risks that they face.

After you’ve done some research about financial issues within the Philippines, write a 3-4-page paper covering the following issues:

1. The currency of your country. Is it stable? Does the exchange rate fluctuate a lot?

2. The banking system in your country. How safe is this system? Any recent banking crisis in your country?

3. Overall does the financial system in your country make it easy or difficult to do business? What kind of steps would you recommend for a company doing business in your country to hedge or minimize its financial risks?

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