International Business Finance and Derivatives -APA STYLE-NEW REFERENCES

Learning Goal: I’m working on a finance discussion question and need support to help me learn.

The Saudi Vision 2030 is a plan to diversify the economy and develop sectors such as education, infrastructure, and tourism. The government desires the encouragement of private investment in a number of sectors of the Saudi economy and emphasizes economic and investment activities and increasing non-oil industry trade between countries.

What role do you consider foreign investors play in achieving this vision this and how should they deal with the exchange rate risks associated with investing in the Saudi economy?

Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.

You are required to reply to at least two peer discussion question posts answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.

• MODULE 14: INTRODUCTION

  Module 14: IntroductionAttached Files:

  •  SEU_FIN500_PPT_Mod14_Ch16.pptx  SEU_FIN500_PPT_Mod14_Ch16.pptx – Alternative Formats (516.053 KB)

  For Your SuccessWelcome to your final module! We conclude this course by reviewing some of the financial factors faced by organizations that want to globalize their products and services. We will consider the effects that different currencies and foreign exchange rates can have on transactions. Also, we will continue our review of the capital budgeting process with the unique focus on foreign investment. Make sure to read all of the required readings this week and complete the Check Your Understanding activity.This week’s discussion question asks you to discuss what would be the role of foreign direct investment (FDI) to achieve the aims of Saudi Vision 2030; also, what might be some challenges with Vision 2030 that Saudi Arabia faces?You are required to reply to at least two peer discussion question posts’ answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.You will also have a quiz to complete pertaining to Modules 13 and 14.Finance Principles for This Module

  • Principle 1: Cash Flow Is What Matters—We are concerned with the money in hand, not accounting profit.
  • Principle 3: Risk Requires a Reward—We don’t take additional risk unless we are compensated with additional return.
  • Principle 4: Market Prices Are Generally Right—The value of financial assets in public markets instantly changes to reflect all available information.

  Learning Outcomes

  1. Understand the internationalization of business.
  2. Explain foreign exchange rate quotes.
  3. Apply international financial theories to determine exchange rates.
  4. Synthesize the international capital budgeting decision-making process.

  ReadingsRequired:Chapter 16 in Foundations of Finance – International Business FinanceAlfalih, A. A., & Bel Hadj, T. (2020). Foreign direct investment determinants in an oil abundant host country: Short and long-run approach for Saudi Arabia. Resources Policy, 66. https://doi.org/10.1016/j.resourpol.2020.101616Engel, C., Lee, D., Liu, C., Liu, C., & Wu, S. P. Y. (2019). The uncovered interest parity puzzle, exchange rate forecasting, and Taylor rules. Journal of International Money and Finance, 95, 317-331. https://doi.org/10.1016/j.jimonfin.2018.03.008Xie, Z., Chen, S.-W., & Hsieh, C.-K. (2020, January). Facing up to the polysemy of purchasing power parity: New international evidence. Economic Modelling. https://doi.org/10.1016/j.econmod.2021.02.019Recommended: Chapter 16 PowerPoint slides  SEU_FIN500_PPT_Mod14_Ch16.pptx – Alternative Formats in Foundations of Finance – International Business FinanceLiu, T., & Lu, D. (2019). Trade, finance and endogenous invoicing currency: Theory and firm-level evidence. Pacific-Basin Finance Journal, 56, 21-44. https://doi.org/10.1016/j.pacfin.2019.05.007