Far East Trading CompanyFINC 667 – Group Case Assignment: Far East Trading Company(Source/ Cases in International Finance pp.136-145)BackgroundInternational business can lead an active company into many complex areas of management. Investment in a number of overseas locations is a demanding process involving divergent conditions and expectations. From a management perspective there are strategic issues in maintaining businesses which are consistent with corporate objectives and focused on core strategies. These are critical concerns to insure that overseas involvement also is directed at achieving maximum revenue potential with minimum financial inefficiency. A large number of international operations and investments require exceptional control over financial operations, accounting, costs, financing and debt arrangements and foreign exchange exposure.“The Far East Trading Company” case illustrates the complex issues of international investment and financial operations. As a long established Swedish trading company, the firm had accumulated very diverse businesses in Southeast Asia, China and Latin America. As a company operating from a currency basis of Swedish krona there were special financial issues. The complexity of operations provided challenges of focus and consistent business and financial management. Funding activities required extensive use of U.S. dollar debt and Asian currency exposure. Revenues and expenses had multiple sources. The company’s concentration of activities in the rapidly growing markets of Asia also made it responsive and vulnerable to regional difficulties. The Asia currency and economic crisis which merged in 1997 and persisted for several years provided extremely demanding challenges to the company’s financial strategies and management.
This stressful situation provided examples of corporate requirements in key area of international finance which are very relevant for our interests.FactorsThe case focuses on the following principal elements:Investment StrategyRevenue GenerationFinancial Management Accounting/ financial controlFinancingForeign Exchange ExposureWhile the case highlights the central corporate issues for the company, the perspectives and requirements of the numerous overseas subsidiaries are of great interest as well.AssignmentThe case will be examined by a group with specific responsibility for reporting to the class. The review will be expected to involve a comprehensive powerpoint presentation including verbal reports including each member of the group for a total of at least 30 minutes. A written report will be expected as well. The case is also available as an Individual assignment.
{article:1067.1:R0002}
[16] “Financial Management Accounting and Financial Management” by Gage, P. and J. S. E. Reeder (ed. 2010)
{article:1075.9:R0005}
[16] “U.S. Businesses (Uniform Organization) – Overview / Statement of Strategic Development” by Gage, P. and J. S. E. Reeder (ed. 2010)
{article:1099.1:R00019}
[16] “Financial Management Accounting and Financial Management (USBA) – Corporate Structure and Responsibilities,” by Gage, P. and J. S. E. Reeder (ed. 2010)
{article:1099.30:R09031}
[15] “Provisional Statement on Accounting, Fiscal Year End 2016” by John J. O’Dea (ed. 2004)
{article:1097.1:R00016}
[15] “Achievements-of-The-Year 2014 – Earnings Per Share” by John MacLeod (ed. 2004)
{article:1097.10:R09032}
[15] “Petition to Reduce Credentialing (Q2 2014)” by Gage D. Mackey and C. E. W. Thompson (ed. 2005)
{article:1112.1:R03922}
{article:1000.1:R03922}
{article:1095.1:R04002}
[15] “Petition to Reduce Credentialing (Q2 2014)” by John MacLeod and C. E. W. Thompson (ed. 2005)
{article:931.1:R08004}
[15] “Report to Congress (Petition on Consolidating Business Activities).” by J. M. MacLean and C. E. W. Thompson (ed. 2007)
{article:857.1:R07003}
[15] “The Committee on Audit of the Financial Services Industry (FSA ) – Form 8-K” by John MacLeod and C. E. W. Thompson (ed. 2005)
{article:834.1:R08018}
[15] [P] This report demonstrates that in all major international financial jurisdictions, and for many other countries, compliance is important (e.g., in the formof “financial risk mitigation measures or regulatory compliance measures on the part of the financial regulators at the global level”). Financial managers are entitled to require minimum required disclosure of non-economic assets, such as financial products, which are not available to them. Moreover, financial managers must disclose “no-risk, safe and sensitive physical assets, but of value.” Accordingly, under Federal Acquisition Regulation (FAT) 42.1, the FSA must not include a financial performance indicators, which include an asset inventory list, a performance indicator that may include any asset or asset class, assets that were not accounted for by the issuer, and other financial statement information required to be filed by the Financial Management Regulatory Authority. This report describes the regulatory requirements of a financial management industry that operates on the basis of the FSA’s financial planning and management systems