International FinanceINTRODUCTION:You now work in the mutual fund department of a large...

Question

International FinanceINTRODUCTION:You now work in the mutual fund department of a large international investment bank. Your new boss has asked you whether the company should offer a global/international fund by investing in companies around the world. Will this offering benefit the potential investors? What is different about this new offering when comparing to a domestic offer?Your boss is also interested in knowing the relevance of corporate governance when it comes to selecting companies to be included in this new global fund. What practical advice can you give to your boss? Is there any theoretical justifications for your advice?As you new boss was a finance professor, he wants to see a thorough and comprehensive discussion of these matters. He is expecting a proper research report with appropriate research and referencingIn general, companies should offer global/international funds by investing in companies around the world. There a benefits in investing internationally as investors gets more options in investing. This report will contain discussions regarding global investment and global corporate governance.			Document Preview:				International Finance Part 2: Company Investment Project/Report   INTRODUCTION:  You now work in the mutual fund department of a large international investment bank. Your new boss has asked you whether the company should offer a global/international fund by investing in companies around the world. Will this offering benefit the potential investors? What is different about this new offering when comparing to a domestic offer?  Your boss is also interested in knowing the relevance of corporate governance when it comes to selecting companies to be included in this new global fund. What practical advice can you give to your boss?  Is there any theoretical justifications for your advice?  As you new boss was a finance professor, he wants to see a thorough and comprehensive discussion of these matters. He is expecting a proper research report with appropriate research and referencing.    ASSESSMENT DETAILS:  The aim of this project is to use the knowledge you have acquired in International Finance (and other subjects) to demonstrate your research skill and your ability to convince your audience why global diversification and global corporate governance are important.  This is to be completed individually.  This report is worth 20% of your total grade. See Blackboard site for specific marking criteria. The report is due 6pm on the 20th of May. Reports are to be submitted via the Blackboard site.   INSTRUCTIONS:  There are two parts in this report (global investment and global corporate governance). Please allow 500 words each part. Make sure you have a reference section at the end of the report using the correct style (APA or Harvard, see http://www.citewrite.qut.edu.au/).

David · Accepted Answer

Global fund Investment:  
Global fund investment include the global diversification of the investment, which is 
make risk minimal , because at a same time all of the world would not turn down. So it is the 
best options for the fund managers to produce a great return at minimal risk. Global 
investment is two types: First include the international investment and second include the 
global investment. 
International Investment:  
International investments are those investments when fund managers or entity invest 
in the other world’s country excluding its own domestic country. Examples of the 
International investments are: MFS international equity, Spruce grove International Equity, 
etc. 
Global Investment: 
 Global investments are those investments when fund managers or entity make 
investment in the other country of the world including its own domestic country. Examples of 
global investments are: MFS MB global investment fund, Setanta Global investment fund etc. 
Global diversification is decisive, still with home market place extending new heights, 
and global funds are the most excellent route to world wide experience.  
WHY SHOULD WE INVEST IN GLOBAL FUNDS AND INTERNATIONAL FUND:  
The upper side: 
• As you are investing in a dissimilar nation, you are padding against broken dips and shock 
in the home market place.  
• You advantage from a number of the fastest growing market place in the globe.
• Exposure to overseas exchange helps assemble prospect needs like financial support of 
child’s learning.  
The downside (Issues related to the global investment): 
• Market risk: Geo political and socio economic issues in every nation or area can control 
fund presentation.  
• Exchange threat: Even though your asset is in domestic currency, the fundamental exposure 
is in overseas money assets. Fluctuations in exchange rate can increase or harm fund income. 
Taxation in Global fund investment:  
• All international finances are treating as non equity funds beneath taxation policy and 
regulations.  
• Expand from worldwide funds are taxed at the marginal rate if sell contained by three years 
from information of acquire.

International Finance INTRODUCTION: You now work in the mutual fund department of a large international investment bank. Your new boss has asked you whether the company should offer a...

Answer To: International Finance INTRODUCTION: You now work in the mutual fund department of a large...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment