This is a Thunderbird Case Study.This case study is founded on the real experiences of several businesses that we have worked with that want to expand their business into emerging markets. The case illustrates and outlines a framework of analysis that targets evaluating foreign exchange rate risks, country risk analysis, and management's decision making procedure in selecting a target country and about handling the hazards connected with this judgement. The case provides data on four potential target countries for which processes of forecasting exchange rates (PPP, IRP, IFE, B/P) can be used.
The case also provides the chance for assessing whether a government is pursuing macroeconomic policies that are appropriate to prevent crises. Eventually, the case allows for an evaluation of the chance of a foreign exchange, fiscal, foreign debt, and banking crisis in at least one of the four states. While the case can be used to analyze macroeconomic policy decisions, its actual purpose is to analyze management's decision-making process to identify and manage potential risks associated with expanding into emerging markets.
PUBLICATION DATE: October 21, 2007 PRODUCT #: TB0087-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING