Question

Create an idea for your own MNC to conduct international business. Your idea should be simplified to the degree that you could possibly implement it someday. However, your idea should also be sufficiently creative to be successful if done properly. Your idea should focus on one country and one foreign currency since many MNCs are focused in this manner when they are first created. So that you can recognize the issues regarding exchange rate risk that is discussed throughout this text, you should assume that you will receive foreign currency when selling your product. Your idea should be for a small MNC instead of a large MNC because even most large MNCs began as small firms. The following questions will help you define your MNC idea:

What is the product that you plan to sell?

What foreign country do you plan to target?

How will you sell the product in that country? (i.e., Through a distributor? By mail?)

Is there some evidence that consumers in that country would buy this type of product?

Do you need to purchase supplies or to hire labor?

Will any expenses you incur from producing the product be in dollars or some other currency

Answer 1

While creating an idea of forming an MNC and initiating from a small firm, I have gone through various combination and then finalized following :

1. The product than I plan to sell is the Winter wears and cloths.
2. The foreign country where I planned to target to sell my Winter wears is Russia, where 75% of the year we will find snow and chill winds and cold weather.
3. It will be appropriate for us to sell the our product ie. Winter wears and cloths, through the distributor. We will appoint distributors area-wise and supplies the product to them , who will in their turn sell the same through the retailers. This will help us to keep control on the business.
4. We will find a lot of customers for our products as it is according to the environment of the country and need of the general people and necessity for everyone.
5. Yes, we will appoint the suppliers who will take care of the production of the wears and cloths. They will coordinate with us towards the supplies to the distributors.
6. All the expenses made by us on the production and distribution of the Winter wears and cloths should mostly in Euros. Now, a days all the international trading in the Europe has been done in Euros.