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INT 620 Final Project Guidelines and Rubric

Overview The final project for this course is the creation of a global expansion proposal for a corporation. The project represents an authentic demonstration of competency because considering global expansion is a conversation many growing companies have, involving financial managers and other stakeholders in the corporation. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final product will be submitted in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes:

 INT-620-01: Analyze the impact of microeconomic and macroeconomic fundamentals on international financial markets to examine the economic climate for corporate expansion

 INT-620-02: Examine the influence exchange rate systems and exchange rate movement have on international corporations and international markets in determining financial risks

 INT-620-03: Propose appropriate international capital budgeting strategies for managing multinational corporations’ international monetary relationships

 INT-620-04: Recommend financial risk mitigation strategies for a corporation expanding to a global market

Prompt For this project, you are taking on the role of a financial advisor to a company considering global expansion. You will choose a publicly traded U.S. company and a country into which that company can expand its business. Your job is to research the country from an economic standpoint to determine the feasibility of the expansion. This will include investigating the microeconomic and macroeconomic environments, exchange rates, and risk factors. Additionally, you need to propose a funding source and foreign currency financing strategies as well as how to repatriate the expected profits. You will prepare an executive summary for the board of directors, with each of the sections below as supporting details based on your research. Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).

 Introduction: This section of the analysis paper is an opportunity to add context about the company and country you selected to make the focus of this paper. You may explain a specific product that is being launched or relaunched in the global market; that information would also be included in this section.

A. Justify your company selection, with sufficient detail. B. Justify the country into which your company will expand, with sufficient detail.

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 Section 1: Broad Strokes of the Expansion Plan. In this section of the paper, you will be explaining the impact a variety of factors have on a company when expanding into global markets. Explaining these factors will prepare you to address the risk factors they create.

A. Describe the microeconomic and macroeconomic factors in the domestic market. [INT-620-01] B. Describe the microeconomic and macroeconomic factors in the prospective global market. [INT-620-01] C. Analyze the exchange rate regime in both domestic and prospective global markets. [INT-620-02] D. Explain how changes in economic factors impact exchange rates. [INT-620-02] E. Analyze the financial impact of exchange rate movements on a corporation. [INT-620-02] F. Explain the main risks and benefits of the proposed expansion. [INT-620-01]

 Section 2: Risk Mitigation Strategies A. Determine current financial and strategic impacts of international risks to inform risk mitigation strategies. [INT-620-04] B. Explain how to mitigate foreign exchange rate risk. [INT-620-02] C. Justify the tools the company is currently using to mitigate its foreign exchange risk. [INT-620-04] D. Analyze the financial impacts of international foreign exchange risk to inform risk mitigation strategies. [INT-620-04] E. Propose future mitigation strategies based on the prospective market for your corporation including addressing risks that are not currently

being efficiently mitigated for your corporation. [INT-620-04]

 Section 3: Global Expansion Funding A. Analyze the current capital structure of the parent company. [INT-620-03] B. Determine the funding source your corporation should secure for this expansion into a global market. For example, you need to determine if the

company will finance its expansion by using debt, issuing new stock, or using retained earnings of its expansion. Look at the current capital structure and use it as a guide for the subsidiary structure. [INT-620-03]

C. Propose a financing strategy of the new expansion. Consider financial requirements and how foreign currency will be acquired. Since the company will need to have foreign currency (currency of the country it is expanding into) on hand from day one of the company operations, determine how it will obtain the foreign currency. What are the options of local financing and any regulations on local currency reserves? [INT- 620-03]

D. Repatriation of Funds: Once the subsidiary starts earning profits, the money needs to be repatriated back to the parent company. Examine the laws and regulations of the global market pertaining to repatriation. Identify any encumbrances on the repatriation of funds such as restrictions, specific fund limits, repatriation intervals, etc. [INT-620-03]

 Executive Summary A. Summarize your final recommendations on the expansion. [INT-620-04] B. Describe ethical considerations inherent in the expansion proposal. [INT-620-04]

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Milestones Milestone One: Introduction and Broad Strokes of the Expansion Plan In Module Three, you will submit your first milestone, addressing the introduction of your company and the expansion plan. This milestone will be graded with the Milestone One Rubric. Milestone Two: Risk Mitigation Strategies In Module Five, you will submit your second milestone, addressing the company’s current and proposed risk mitigation strategies. This milestone will be graded with the Milestone Two Rubric. Milestone Three: Global Expansion Financing In Module Seven, you will submit your third milestone, addressing capital structure, funding, and financing. This milestone will be graded with the Milestone Three Rubric. Final Submission: Global Expansion Proposal In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

Deliverables Milestone Deliverable Module Due Grading

One Introduction and Broad Strokes of the Expansion Plan

Three Graded separately; Milestone One Rubric

Two Risk Mitigation Strategies Five Graded separately; Milestone Two Rubric

Three Global Expansion Financing Seven Graded separately; Milestone Three Rubric

Final Submission: Global Expansion Proposal

Nine Graded separately; Final Project Rubric

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Final Project Rubric Guidelines for Submission: Using the Final Project Template, your proposal should be 10–12 pages in length (2–3 pages for the executive summary, 8–9 pages of supporting details, plus a cover page and a reference page). Use double spacing, 12-point Times New Roman font, and one-inch margins. Include at least three references cited in APA format.

Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value

Introduction: Company Selection

Meets all “Proficient” criteria, plus reasons are more complex and demonstrate nuanced considerations in company selection

Justifies company selection with sufficient detail

Justifies company selection, but reasons are incomplete or unclear

Does not justify company selection

5

Introduction: Country

Meets all “Proficient” criteria, plus reasons for the expansion are more nuanced

Justifies the country into which the company will expand, with sufficient detail

Justifies the country into which the company will expand, but reasons do not actually support the expansion or are stated incompletely or unclearly

Does not justify the country into which the company will expand

5

Section 1: Factors in the Domestic Market

[INT-620-01]

Meets all “Proficient” criteria, plus description demonstrates understanding of more complex microeconomic and macroeconomic factors

Describes the microeconomic and macroeconomic factors in the domestic market

Describes the microeconomic and macroeconomic factors in the domestic market in a cursory, incomplete, or unclear manner

Does not describe the microeconomic and macroeconomic factors in the domestic market

5

Section 1: Factors in the Prospective Global Market [INT-620-01]

Meets all “Proficient” criteria, plus description demonstrates understanding of more complex microeconomic and macroeconomic factors

Describes the microeconomic and macroeconomic factors in the prospective global market

Describes the microeconomic and macroeconomic factors in the prospective global market, but the factors described are not the most important ones to consider, or description is incomplete or unclear

Does not describe the microeconomic and macroeconomic factors in the prospective global market

5

Section 1: Exchange Rate Regime [INT-620-02]

Meets all “Proficient” criteria, plus analysis demonstrates nuanced understanding of the exchange rate regimes

Analyzes the exchange rate regime in both domestic and prospective global markets

Analyzes the exchange rate regime in both domestic and prospective global markets, but analysis is cursory, incomplete, or unclear

Does not analyze the exchange rate regime in both domestic and prospective global markets

5

Section 1: Changes Impact Exchange

Rates [INT-620-02]

Meets all “Proficient” criteria, plus explanation includes the impact of more nuanced changes on exchange rates

Explains how changes in economic factors impact exchange rates

Explains how changes in economic factors impact exchange rates, but explanation is cursory, incomplete, or unclear

Does not explain how changes in economic factors impact exchange rates

5

5

Section 1: Financial Impact

[INT-620-02]

Meets all “Proficient” criteria, plus response includes analysis of more complex financial impacts the rate movements have on a corporation

Analyzes financial impact of exchange rate movements on a corporation

Analyzes financial impact of exchange rate movements on a corporation, but analysis does not include the most important impacts or is otherwise unclear or incomplete

Does not analyze financial impact of exchange rate movements on a corporation

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Section 1: Risks and Benefits

[INT-620-01]

Meets all “Proficient” criteria, plus explanation shows keen insight into expansion risks and benefits

Explains the main risks and benefits of the proposed expansion

Explains the main risks and benefits of the proposed expansion, but explanation does not include all the main risks and benefits or is otherwise incomplete or unclear

Does not explain the main risks and benefits of the proposed expansion

5

Section 2: Current Impacts

[INT-620-04]

Meets all “Proficient” criteria, plus response elaborates on less common impacts to inform risk mitigation strategies

Determines current financial and strategic impacts of international risks to inform risk mitigation strategies

Determines current financial and strategic impacts of international risks to inform risk mitigation strategies but is missing key ideas

Does not determine current financial and strategic impacts of international risks to inform risk mitigation strategies

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Section 2: Mitigate Foreign Exchange

Rate Risk [INT-620-02]

Meets all “Proficient” criteria, plus response includes nuanced explanation of mitigation options

Explains how to mitigate foreign exchange rate risk

Explains how to mitigate foreign exchange rate risk, but explanation is incomplete or unclear

Does not explain how to mitigate foreign exchange rate risk

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Section 2: Tools [INT-620-04]

Meets all “Proficient” criteria, plus response includes nuanced reasons the tools were chosen

Justifies the tools the company is currently using to mitigate foreign exchange rate risk

Justifies the tools the company is currently using to mitigate foreign exchange rate risk, but reasons provided are minor, incomplete, or unclear

Does not justify the tools the company is currently using to mitigate foreign exchange rate risk

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Section 2: Financial Impacts

[INT-620-04]

Meets all “Proficient” criteria, plus analysis includes consideration of complex financial impacts

Analyzes financial impacts of international foreign exchange risk to support risk mitigation strategies

Analyzes financial impacts of international foreign exchange risk to support risk mitigation strategies in a way that is incomplete or unclear

Does not analyze financial impacts of international foreign exchange risk to support risk mitigation strategies

5

Section 2: Future Mitigation Strategies

[INT-620-04]

Meets all “Proficient” criteria, plus response includes complex strategies to address nuanced risks

Proposes future mitigation strategies based on the prospective market for the corporation including addressing risks that are not currently being efficiently mitigated for the corporation

Proposes future mitigation strategies based on the prospective market for the corporation, but proposal does not include risks that are not currently being efficiently mitigated

Does not propose future mitigation strategies based on the prospective market for the corporation

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Section 3: Capital Structure

[INT-620-03]

Meets all “Proficient” criteria and demonstrates in-depth knowledge of capital structure

Analyzes the current capital structure of the parent company

Analyzes the current capital structure of the parent company, but analysis is cursory or lacks important details

Does not analyze the current capital structure of the parent company

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Section 3: Funding Source

[INT-620-03]

Meets all “Proficient” criteria and exhibits keen insight into funding possibilities

Determines the funding source the corporation should secure for this expansion into a global market

Determines the funding source the corporation should secure for this expansion, but response is cursory or lacks important details

Does not determine the funding source the corporation should secure for this expansion

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Section 3: Financing Strategy

[INT-620-03]

Meets all “Proficient” criteria, and proposal exhibits keen insight into financing possibilities

Proposes a financing strategy for the new expansion

Proposes a financing strategy for the new expansion, but proposal is cursory or lacks important details

Does not propose a financing strategy for the new expansion

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Section 3: Repatriation of

Funds [INT-620-03]

Meets all “Proficient” criteria and demonstrates in-depth knowledge of fund repatriation restrictions

Identifies any encumbrances on the repatriation of funds

Identifies any encumbrances on the repatriation of funds, but response is cursory or lacks important elements

Does not identify any encumbrances on the repatriation of funds

5

Executive Summary: Final

Recommendations [INT-620-04]

Meets all “Proficient” criteria, and summary expertly presents concise, compelling case for expansion

Summarizes final recommendations on the expansion

Summarizes final recommendations on the expansion, but summary is cursory or lacks important elements

Does not summarize final recommendations on the expansion

5

Executive Summary: Ethical

Considerations [INT-620-04]

Meets all “Proficient” criteria, and deftly presents ethical considerations as win-win proposition

Describes ethical considerations inherent in the expansion proposal

Describes ethical considerations inherent in the expansion proposal, but response is cursory or lacks important elements

Does not describe ethical considerations inherent in the expansion proposal

5

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

5

Total 100%