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Virtual Organization Finance Paper

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Prepare response to Problems 1–4 (Ch. 22) of Financial management: Principles and applications . (22-1. What additional factors are encountered in international as compared with domesticfinancial management? Discuss each briefly.) See Above Questions...
Select a Virtual Organization using the student website. Assume your organization is privately held, wants to expand operations, and is faced with three options for expansion:
• Going public through an IPO
• Acquiring another organization in the same industry
• Merging with another organization
Prepare a 1,050- to 1,400-word paper in which you compare and contrast options and make a recommendation about which strategy the organization must choose.
Address:

• Strengths of each approach-
• Weaknesses of each approach - minimum of 350 words

22-1. What additional factors are encountered in international as compared with domestic financial management? Discuss each briefly.-
22-2. What different types of businesses operate in the international environment? Why are the techniques and strategies available to these firms different?-
22-3. What is meant by arbitrage profits?-
22-4. What are the markets and mechanics involved in generating (a) simple arbitrage profits, and (b) triangular arbitrage profits?-

22-1
When comparing the Domestic Financial Management with International Financial Management, the most important factor is Exchange Rate. Exchange rate arises between a domestic company (DC) and a multi-national corporation (MNC). Multi-National corporations have operations all over the world. Because of this they have dealings with international groups of customers, suppliers and shareholders. One thing the MNC have to take into consideration are exchange rate fluctuations because it affects their sales and investment decisions, and how it affects the way MNC reports their

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