Multinational Xenoa Investing in Multinational Corporations (Research Proposal Sample)

INTERNATIONAL FINANCE MANAGEMENT
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Table of Content u

Section A  3

Rationale  3

Objectives for Growth  4

Constraints an Investment Manager may Face  5

Section B  5

Macroeconomic Analysis  5

UK Economic Outlook  6

United Kingdom Economic Growth  7

Valuation Models  7

AstraZeneca  7

Auto Trader Group  7

Associated British Foods  8

Section C  8

Potential Impact of the COVID-19 Pandemic and the Ukraine-Russia War  8

Section D  10

Summary  10

Findings 10

Limitations  11

Recommendations  11

Reference List 13
International Finance Management
Section A
Rationale
The multinational Xenoa seeks to help the family invest in AstraZeneca PLC, Auto Trader Groups, and Associated British Foods. The three companies have been recently listed in FTSE 100 and they have portrayed a positive growth pattern in the past three years. There is a great potential for the family’s business growing by investing in these multinational corporations. For instance, the primary objective of Associated British Foods is to provide safe and nutritious food. The company has also been investing in affordability which ensure customers get value for money in all products from the company. These are among the important consumer needs in the current market as more people need affordable safe and nutritious food products.
The rationale for choosing these three companies is based on the market seeker’s goals. According to Shapiro and Moles (2014, p. 14), the market seeker’s rationale is about the big nature of the foreign market. Therefore, investing in multinational corporations will give the family business an advantage over other companies, such the ability to produce unique products and using advanced processes. MNCs have firm-specific advantages that must be considered when making investments. Additional advantages in multinational corporations include improved and unique technologies, patents, specific market rights, and advanced knowledge and skills hardly found in domestic markets. besides, MNCs benefits in domestic markets can also work efficiently in foreign markets.
The exploitation of more foreign markets can be possible at a lower cost for multinational corporations. For instance, if a pharmaceutical company like AstraZeneca successfully develops a drug, it can easily enter several markets, consequently acquiring relevant permissions within a short period. This is the primary reason why Xenoa recommends AstraZeneca, which after developing a COVID-19 vaccine has managed to obtain patents in several markets in less than two years. Marketing of the vaccine and its viability enables the company to extract revenues from several markets than it would be if marketing was done in one country. AstraZeneca also has a top-line growth which has helped the company to increase its core earnings per share (EPS). In addition to the company’s strong revenue growth, AstraZeneca provides a great opportunity for the family to grow its wealth in the long-term.
Another important reason for investing in the selected multinational corporations is increased opportunity set. It has been