Assignment title: Information
Assignment task.
International Investments plc provides finance to a range of businesses. At its half yearly
meeting a number of issues were raised. You are required to write a 2500 word report
responding to the following requests.
The concerns were as follows:
1) Mr Wart is concerned about the value of the dollar, in particular the effect of the large
negative balances on the Balance of Payments. "Surely" he argues, "this makes
investment in US bonds very risky and also poses problems for companies who
invoice in dollars." He asks for more information on the likely future of the dollar and
the critical issues that will affect its future value.
(33 marks)
2) Mr Shallow expresses concerns about a rise in the number of businesses who are
seeking to trade on the financial markets and make a profit through graduates who
have taken degrees that include experience in trading financial securities. "In my
opinion" he observes "such businesses are simply gambling and this so called trading
room training is of no real value." The meeting requests more information on the
behaviour of market prices and the possibility of traders making a profit through
trading in shares, currencies, futures and other such financial market prices.
(33 marks)
3) Finally, Mr Moldy is concerned about the large numbers of companies who now see
their main profits coming from abroad. "In their plans," he notes "particularly with
regard to service and retail companies, they see a smooth progression from exporting
or providing the service over the internet, to developing the service in the country
concerned". I really need an evaluation or guide as to the financial problems that they
are likely to encounter and how they can respond. Also some idea as to how I might
evaluate the problems would help!"
(34 marks)