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)