Word count is suggested but no penalty for over/under. Citations throughout and critical discussion, especialy inpart 1 is very important. For part 2 the work
must be shown and data included in the Appendix
Content:
In entering an emerging market, multinational corporations such as Coca Cola, Apple Inc., Marks and Spencer, Walmart and others have to be cautious in
their response to resistance from domestic cultures and local industries. As an international finance analyst, you are required to complete the following
tasks:
1. Identify and critically discuss various international risks facing large multinational corporations, such as Coca Cola, when entering a command
(communist) economy such as North Korea or officially the Democratic People’s Republic of Korea (DPRK). (30%)
2. The North Korean won (KPW) is the official currency of the DPRK. Using the numerical software package as explained in the online lectures and using
North Korean exchange-rate data on the Internet (daily, weekly, monthly or yearly) produce a report examining how you would forecast exchange-rate trends
in North Korea. You are required to illustrate your finding with step-by-step explanation and put your data in an appendix. (40%)
3. Based on your forecasting in (2), what would be the value of the currency (increasing or decreasing). Propose relevant strategic recommendations for
Coca Cola Multinational, which is based in Pyongyang on how to cope with this currency appreciation or depreciation. (30%)
