Critical review of the methods used by GM to mitigate against risks in a multinational context
$4.95
accounting
presentation
published 04/06/2008
review : Completed
level : Advanced
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General Motors (GM) is one of the 10 largest multinational corporations in the world. Although the organization has enjoyed a considerable amount of success in a multination organization, the reality is that the company has had to take a number of steps to ensure its financial security in the foreign market. Overall, General Motors faces a wide range of threats that could significantly impede the development of the organization. These threats include: transaction exposure, operating exposure and translation exposure. Given that each of these threats could notably impact the ability of the organization to be financially successful, this investigation considers a review of these threats and the specific methods that are currently being utilized to mitigate these threats. Through a careful consideration of what has been written on these issues, a more integral understanding of the financial challenges facing multinational corporations will be elucidated.
Table of Contents
- Introduction
- Managing Financial Risk
- Transaction Exposure
- Currency Forwards
- Currency Options
- Currency Swaps
- Operating Exposure
- Translation Exposure
- Conclusion
