26 May Question module 5 case study Case 5: International Financial Management
Question
Case 5: International Financial Management
International airlines always receive a large portion of their revenues from a variety of different currencies due to their international reach and global range of customers. Furthermore, their risk may depend on political/economic developments in other countries. Furthermore airlines need to purchase oil at world market prices, and oil is one of their largest single costs.
El Al Airlines in particular is in a risky business in a risky part of the world. Read the following articles on El Al Airlines and do some of your own research on El Al:
Steinblatt, R. (May 3, 2013) El Al makes $17.3m gain on currency hedges, Tribune Business News, Washington [Available on Proquest]
Solomon, S. (2013) El Al Says Fimi to Invest as Much as $75 Million for Stake, Bloomberg News,http://www.businessweek.com/news/2013-04-14/el-al-says-fimi-to-invest-as-much-as-75-million-for-stake
Case Assignment:
After researching El Al Airlines and reviewing the background materials on international financial management, write a four to five page paper addressing the following questions:
1. What recent major events do you think El Al’s financial management team need to worry about the most?
2. What strategies can El Al employ to guard against their main international financial risks?
3. Would you personally invest in El Al Airlines? Explain your reasoning and use their international financial risks and their efforts to hedge against these risks as part of your answer.
Assignment Expectations
- Answer the assignment questions directly
- Stay focused on the precise assignment questions, don’t go off on tangents or devote a lot of space to general background materials
- List supporting references and cite sources in proper format
- Use appropriate writing style in essay form (organization, grammar, & spelling- see Writing Guidelines).
module 5 SLP
| SLP5 Assignment Expectations
You have been asked by a CEO of a multinational enterprise to evaluate whether or not his company should begin a business enterprise in the country you have chosen for your session long project. Write a 2 page memo to the CEO explaining why or why he should not start a business in this country. You need to carefully justify your answer based on the knowledge you acquired this session. You will be assessed not just on your knowledge, but how creative your arguments are presented. This is potentially a multi-million dollar venture and you are addressing a CEO. Please keep this in mind. Post your assignment. This is a Signature Assignment for BUS401 SLP Module 5 There are 2 specific learning outcomes: 1) analyze the impact of global forces on business practices and 2) assess the impact of culture and diversity on business practices In this SLP assignment for Module 5 our emphasis will be on understanding global forces, culture and diversity on business practices. You will be summarizing all of what you learned the in the Cases, SLPs and TDs. The grading rubric below has been developed to measure student success in meeting the BUS401 5 SLP expectations related to applying your knowledge of global forces, culture and diversity on doing business in other countries.
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