FINANCE 370

FINAL PROJECT DIRECTIONS

300 points

Purpose of the Project

The purpose of the final project is for you to apply some of the concepts you have learned in the course by accessing internet sites specified in questions, known as Internet Exercises, found at the back of each chapter of your text. In answering the questions, you are provided an opportunity to discuss, illustrate and apply some of the chapter concepts found on the website.

What to submit?

Each of the following chapters and internet exercises will require you to write a minimum of 7 sentences. For more grading details, see the Grading Rubric at the end of the document. Since the Project is divided into two parts, PART ONE includes the following chapters and internet exercise questions that are due at the end of Week 9. For the exact due date for PART ONE see the Course Outline in the Course Documents Canvas Module:

FINAL PROJECT: PART ONE

Chapter 1 Internet Question 1.1

Global Financial Integrity. The field of international finance has always been one where the best and worst of economic behaviors may flourish. Question: Using the website of Global Financial Integrity identify and explain three dark economic behaviors found on the site.

Global Financial Integrity www.gfintegrity.org/

Chapter 5 Internet Question 5.6

Pacific Exchange Rate Service. The Pacific Exchange Rate service website provides a wealth of current currency exchange rate information and statistics. Question: Using the website below, identify five currencies that have suffered significant depreciations over the last 5 years and explain why they have occurred. fx.sauder.ubc.ca/plot.html

Chapter 6 Internet Question 6.4

World Bank’s International Comparison Program. The World Bank has an ongoing research program that focuses on the relative purchasing power of 107 different economies globally. Question: Using the latest data tables identify which five economies seem to be showing the greatest growth over the last three years in relative purchasing power and explain why this is happening for each of the five. International Comparison Program worldbank.org/en/programs/icp

Chapter 9 Internet Question 9.3

Trading Economics. Trading Economics is a private firm that generates regular foreign exchange rate forecasts for major currency pairs. Question: Use the following website to describe how the euro is expected to move against both the U.S. dollar and the British pound in the coming year, 2022-2023 and why it is forecast to happen. Trading Economics tradingeconomics.com/forecast/currency

Chapter 10 Internet Question 10.2

Hedging Objectives. All multinational companies will state the goals and objectives of their currency risk management activities in their annual reports. Question: Using the four websites below, find the answer to “why hedge?” given by each corporation in their most recent annual report found on their websites. Nestlè www.nestle.com Disney www.disney.com Nokia www.nokia.com BP www.bp.com

FINAL PROJECT: PART TWO

PART TWO includes the following chapters and internet exercises. For the exact due date see the Course Outline in the Course Documents Canvas Module:

Chapter 13 Internet Question 13.3

Damodaran’s Cost of Capital Data. Professor Aswath Damodaran of NYU’s Stern School regularly publishes estimates of the cost of capital for a wide spectrum of industries. Question: Use the following website to identify and explain the rates in five major industries. NYU’s Stern School people.stern.nyu.edu/adamodar/New_Home_Page/datafile/wacc.htm

Chapter 14 Internet Question 14.3 London Stock Exchange. The London Stock Exchange (LSE) lists many different global depositary receipts among its active equities. Uing the LSE’s site identify the five largest GDRs that are active today and describe the corporations they represent.

London Stock Exchange www.londonstockexchange.com/traaders-and-brokers/security-types/gdrs/gdrs.htm

Chapter 15 Internet Question 15.4

Tax Practices for International Business. Many of the major accounting firms provide online information and advisory services for international business activities as related to tax and accounting practices. Question: Use the following 5 websites find current information that identifies and explains any 5 tax law changes and practices over the last five years. Ernst and Young www.ey.com/tax/ Deloitte & Touche www2.deloitte.com/us/en/services/tax.htm KPMG www.kpmg.com Price Waterhouse Coopers www.pwc.com/gx/en/services/tax/international-tax-services.html Ernst & Young www.eyi.com

Chapter 16 Internet Question 16.1

Letter of Credit Services. Commercial banks worldwide provide a variety of services to aid in the financing of foreign trade. Question: Access the websites of any of the many major multinational banks (a few are listed below) and identify and explain at least five types of letter of credit services and other trade financing services they are able to provide. Bank of America www.bankofamerica.com Barclays www.barclays.com Deutsche Bank www.deutschebank.com Union Bank of Switzerland www.unionbank.com Swiss Bank Corporation (now UBS) https://www.ubs.com/global/en/investment-bank.html

Chapter 17 Internet Question .1 Global Corruption Report. Transparency International (TI) is one of the leading non-governmental anticorruption organizations today. Recently, it has introduced its own annual survey analyzing current developments, identifying ongoing challenges, and offering potential solutions to all. One dimension of this analysis is the Bribe Payers Index. Question: Visit TI’s website to view the latest edition of the Index and select the top five countries and explain why they are the top five.

Corrpution Index https://www.transparency.org/research/bpi

SAMPLE OF AN A GRADE ANSWER WORTH A FULL 300 POINTS

Chapter 1 Internet Question 1.4 (Note: This question has been replaced as part of the Final Project)

World Economic Outlook. The International Monetary Fund (IMF) regularly publishes its assessment of the prospects for the world economy. Choose a country of interest and use the IMF’s current analysis to form your own expectations of its immediate economic prospects.

IMF Economic Outlook www.imf.org/external/index.htm

Chapter 1 - 1.4

The purpose of the International Monetary Fund (IMF) is to promote exchange stability

and maintain orderly exchange arrangements among members. It wants to facilitate international

trade, promote high employment, and promote economic growth. The IMF was established in

1944 and currently has members from 190 countries. The IMF assesses the prospects of the

world economy regularly. According to India's International Monetary Funds analysis, India is

gradually recovering from the pandemic. India's growth is projected at 9.5% in 2021 and 8.5% in

2022. Even though India benefits from favorable demographics, human capital is held back from

education and training not being accessible because of the pandemic. The impact of the

pandemic can be limited if there is a faster vaccination rate. Executive board directors agree on

maintaining accommodative monetary policies appropriately and keeping a close eye on inflation

pressures. Authorities are also advancing structural reforms which prioritize ongoing labor and

land reforms. The reforms also include infrastructure investment, improvements in governance,

and improving education outcomes. These reforms will help maximize India's long-term growth

and help alleviate poverty and inequality. Even though the pandemic has affected India's growth,

India's economy will be back to normal and recover gradually as the vaccination rates increase

and the economic reforms are in place.

Countries that can use a site to help them is the United Nations Conference on Trade and

Development (UNCTAD). The United Nations Conference on Trade and Development

(UNCTAD) aims to promote trade and development. The UNCTAD was founded in the 1960s

when there were growing concerns of developing countries with international trade, which led to

the site's development to develop appropriate solutions to problems. The goal of the United

Nations Conference on Trade and Development is to expand the capabilities of developing

countries in trade, investment, and development to overcome difficulties when going global. The

highest policy-making of UNCTAD is the Conference which meets every four years to set policy

guidelines. The site helps developing countries by conducting research and making

recommendations that can help the national and international policy-making processes, which

also contribute to promoting economic policies that are aimed at ending global economic

inequalities. Using this site can help developing countries face problems in international trade,

and they can see some recommended solutions to mitigate the problem. The site also shows

recent articles that are relevant to today's economy. For example, If the word "India" is searched on the search bar, current articles on India are shown, which can be examined to see how the

economy might be doing.

GRADING RUBRIC: FINAL PROJECT = 300 POINTS

300-270 POINTS

All questions are answered with more than 7 sentences for each answer that refer to one of the concepts found in the chapter or the course. Many additional related sources such as other websites, graphs, charts and articles are included in the answer

240-269 POINTS

All questions are answered with more than 7 sentences for each answer that refer to one of the concepts found in the chapter or the course. A few additional related sources such as other websites, graphs, charts and articles are included in the answer.

210-239 POINTS (The Minimum Grade)

All questions are answered with AT LEAST 7 sentences for each answer that refer to one of the concepts found in the chapter or the course.

Anything less than the material for a minimum grade will earn zero points.