A key dynamic within any Multi-National Corporation (MNC) is cash and foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics, especially since COVID-19. Within the Caribbean and North American jurisdiction, the economic framework is tightly connected with the major Asian economies of China, the United Kingdom and Japan. The Caribbean and the North American economy have been a barometer of the global economic cycle. For both Caribbean and North American economies, many Multi-National Corporations have made significant investments to reduce the production cost of goods and diversification benefits. Despite the benefits that could materialize, some North American countries have not been resilient through Global market shocks. Given this context, the following questions require research within the Caribbean context and current market dynamics since COVID-19. You have been asked to evaluate possible sites for a Caribbean production facility that will manufacture your firm's products and sell them to the United Kingdom and Japanese market. Outline and discuss five (5) real exchange rate considerations you should entertain in your evaluation.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
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A key dynamic within any Multi-National Corporation (MNC) is cash and foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics, especially since COVID-19. Within the Caribbean and North American jurisdiction, the economic framework
is tightly connected with the major Asian economies of China, the United Kingdom and Japan. The Caribbean and the North American economy have been a barometer of the global economic cycle. For both Caribbean and North American economies, many Multi-National Corporations have
made significant investments to reduce the production cost of goods and diversification benefits. Despite the benefits that could materialize, some North American countries have not been resilient through Global market shocks. Given this context, the following questions require research within
the Caribbean context and current market dynamics since COVID-19.

You have been asked to evaluate possible sites for a Caribbean production facility that will manufacture your firm's products and sell them to the United Kingdom and Japanese market.

Outline and discuss five (5) real exchange rate considerations you should entertain in your evaluation.

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