Coca Cola Company has different methods of pricing its revenues

Course: Economics for Global Manager
Textbooks: International Economics by Appleyard, Cobb 8th ed ISBN Number
9780077822132 and Microeconomics by Perloff 8th ed. ISBN Number 9781256928546
Select a U.S. multinational company, (Coca-Cola Company) and respond to the following
questions:
1. In terms of currency denomination, describe how the firm prices its revenues and
costs. NOTE: a table would be the easiest method to show how you did your
calculations. Find currency rates: xc.com

2. For multinational enterprises (MNEs) with multiple foreign operations, consider
any 2 of those operations and the contribution they are making to the parent firm's
profits (I want you to do Africa and another country in Asia or Europe).
Note: Find an annual REPORT of Coca-Cola Specifically in the Treasury Notes
3. What means do they use to hedge against exchange rate risk? (Why Hedge?)
Different Hedging’s (Covered Interest Arbitrage, future contracts, forward
contracts, Options, and Derivatives)
4. Using this information, what do you think would be the effect of increases or
decreases in the dollar’s exchange value on the firm’s profitability? Note: Us a
Financial Textook.
5. Be sure to show all applicable work.
Present your findings as a Word document of 7 pages formatted in APA style. Include 7
academic, peer-reviewed references that are relevant to and support the deliverable.
Submitting your assignment in APA format means, at a minimum, you will need the following:
1. Title page: Remember the running head AND THE TITLE IN ALL CAPITALS.
2. Abstract: This is a summary of your paper—not an introduction. Begin writing in thirdperson voice.
3. Introduction
4. Body: The body of your paper begins on the page following the title page and abstract
page and must be double-spaced (be careful not to triple- or quadruple-space between
paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular
black type. Do not use color, bold type, or italics except as required for APA-level

headings and references. The deliverable length of the body of your paper for this
assignment is 5-6 pages. In-body academic citations to support your decisions and
analysis are required. A variety of academic sources is encouraged.
5. Recommendations
6. Conclusion
7. Reference page: References that align with your in-body academic sources are listed on
the final page of your paper. The references must be in APA format using appropriate
spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the
type of resource used. Remember, the Reference page is not a bibliography but a further
listing of the abbreviated in-body citations used in the paper. Every referenced item must
have a corresponding in-body citation.
This assignment will be assessed using the rubric provided here.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course
materials.
Final Outline in APA Format with Proper Citations, correct grammar, and appropriate
punctuation and citations
I.

II.

Cover Page
A. Title
B. Name
C. University
D. Date
Abstract This is a summary of your paper—not an introduction. Begin writing in
third-person voice.

III Introduction
IV Coca-Cola Company - Currency Denomination
V Foreign Operations (Two Examples
A. Operation and its Contribution
B. Operation 2 and its Contribution
VI. Methods Used by Coca-Cola to hedge against Exchange Rate Risk
VII Recommendations
VII Conclusion

VIII Reference