Pick one of the following: • Technical Forecasting • Fundamental Forecasting • Market Based Forecasting Why might forecasting be...

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Finance

Pick one of the following:
•   Technical Forecasting
•   Fundamental Forecasting
•   Market Based Forecasting
Why might forecasting be used by a multinationalcorporation?
Clearly define the forecasting technique you have chosen.Explain in detail what is involved with the forecasting techniqueyou have chosen.
Explain what is meant by market efficiency. Then explain theimplications of market efficiency on your chosen technique.

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3.7 Ratings (413 Votes)

I have picked up fundamental forecasting Why might forecasting be used by a multinational corporation An MNC deals with businesses in multiple currencies Its operations profitability and cash flows are dependent upon exchange rates It therefore requires an estimate of forecast for exchange rates in advance to make various strategic and operational decisions An MNC will therefore require exchange forecasts for Figuring out their exposures in different currencies and thus determine hedging decisions Assessment of profitability and cash flows in the next forecast period Assessment of surplus or shortfall in the cash flows and Decide upon short term investment decisions in case there is surplus Look for bridge financing decisions in case there is shortfall Assessment of undertaking capital See Answer

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Pick one of the following:• Technical Forecasting• Fundamental Forecasting• Market Based ForecastingWhy might forecasting be used by a multinationalcorporation?Clearly define the forecasting technique you have chosen.Explain in detail what is involved with the forecasting techniqueyou have chosen.Explain what is meant by market efficiency. Then explain theimplications of market efficiency on your chosen technique.