ECO365 Humacao Economics of Globalization Hyundai Motor Group Inc Report

ECO365 Humacao Economics of Globalization Hyundai Motor Group Inc Report

Instructions/Descriptions

ECO365 Humacao Economics of Globalization Hyundai Motor Group Inc Report

Hyundai Motor Group, Inc.

Currently, the Management of Hyundai Motor Group is reviewing its North American operations.

In this process, it has hired your consulting firm to provide an outlook on the prospects of

moving their operation from Montgomery, Alabama to another site. The company faces an

uncertain future with US trade restrictions and tariffs. The CEO has tasked you with developing

the plan of action for the company’s automotive division (this includes Hyundai and KIA). The

CEO needs your recommendation of possible location choices to minimize any financial

damage that the company would face if the trade situation worsens in the future. Currently,

approximately 30 percent of cars produced in the company’s US plants are exported to countries

throughout the world except for China. The CEO wants your recommendation of possible location changes for the US operations. The company will likely not change location; however, the CEO wants to keep all options available for the near future.

Pick 4 of the following 6 questions.

Explain how exchange rates are considered a self-correcting mechanism of international trade.

Explain with examples (at least 3) of arbitrage in exchange rates.

Explain how a country’s balances of payment directly affect the exchange rate.

Explain the many reasons why companies locate outside of their home country.

Explain how the balance of payments is balanced. What pays for a current account defeicit or a capital account surplus.

Explain the relationship between interest rates and exchange rates.

ECO365 Humacao Economics of Globalization Hyundai Motor Group Inc Report

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!