Part 3 Essay Example | Topics and Well Written Essays - 1250 words

Part 3 - Essay Example Multinational Corporations execute diverse roles in the foreign exchange market such as the provision of different methods of foreign investment and promotion of exports and exports. Nevertheless, such entities tend to incur diverse risks such as exchange rate vitality and flexibility in pricing. Foreign exchange risk relates to the possibility of losing financial resources in the course of buying and selling currency due to unexpected changes in relation to exchange rates. Besides their roles in the foreign exchange market, multinational corporations face diverse risks. Multinational corporations execute diverse roles and duties within the foreign exchange market. In this section of the research paper, the focus will be on illustration of the different roles of multinational corporations in the foreign exchange market. Most of the multinational corporations tend to engage in exporting and importing of various products based on the demands and projections in their host nations. In that context, multinational corporations contribute to the promotion of imports and exports within the foreign exchange markets. Multinational corporations are also vital for the generation of diverse decisions in relation to foreign investment. That is through the integration of the market research and development programs in the course of making appropriate decisions with reference to the achievement of the goals and targets within the industry and market of operation. Multinational corporations are essential to the provision of alternative techniques of the foreign inve stment. It is vital to the realization of effectiveness and efficiency in the achievement of the goals and targets of foreign investment. Similarly, organizations or multinational corporations operating in the foreign exchange market concentrates on the promotion of international