FIN-605-2

For this assignment a Case analysis, Read the case study: “KiKos and the South Korean Won” that begins on page 200. You also need to consider the ethical issues that the case describes.

As you write your paper for a case study, you need to address the following questions:

1.       Identify the stakeholders who were affected in the case.

2.       What were the expectations—and the fears—of the South Korean exporting firms that purchase the KiKos?

3.       What is the responsibility of a bank that is offering and promoting these derivative products to its customers? Does it have some duty to protect their interests? Who do you think was at fault in this case? Why?

4.       Did the government have an obligation to step in and intervene in the actions of the exporters and the banks? If so, why? If not, why not? What actions could the government of South Korea taken?

5.       Think back to what you learned about the balance of payments in Chapter 3. After reading the case, how do you think the balance of trade was affected in South Korea?

6.       If you were a consultant advising firms on their use of foreign currency derivative products, what lessons would you draw from this case, and how would you communicate that to your client?

Your paper should be between 6-8 pages long. This does not include the cover page or the reference page.

The format of your paper should be as follows:

1.      Cover page

2.      Introduction

        a.       Identify the key problems and issues in the case study.

        b.      Formulate and include a thesis statement, summarizing the outcome of your analysis in 1–2 sentences.

3.      Background

        a.       Set the scene: background information, relevant facts, and the most important issues.

       b.      Demonstrate that you have researched the problems in this case study.

4.      Ethical Considerations

        a.       Exporters

        b.      Banks

        c.       Government

5.      Economic Effects

         a.       Balance of Trade

         b.      Other economic effects?

6.      Recommendations

         a.       Determine and discuss specific strategies for accomplishing the proposed solution.

          b.      If applicable, recommend further action to resolve some of the issues

           c.       What should be done and who should do it?

7.      References page.

Reference textbook:

Eiteman, David K. Stonehill, Arthur I., & Moffett, Michael H., (2016). Multinational

Business Finance, 14th Edition. [Bookshelf Online]. Retrieved from

https://online.vitalsource.com/#/books/9780133880106/