MGT 237 International Financial Management Case - MGT 237...

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MGT 237 International Financial Management Barings Bank Case Xiaoxi Shang (861246160) Questions for Analysis: 1. Define future and options contracts and provide an example of settling accounts of two customers that have taken opposing sides in these contracts.
2. Did Mr. Leeson fit well in the Singaporean business culture? Using his example or other examples, comment in general regarding the problems that are faced by "Ex Pat's" and their employers. (Ex Pats are workers that are sent from the home office to work in the foreign branch of a multinational).
environment in Singapore, and if he can manage his team better there will not be such huge mistake in the end. There’s another famous Ex Pat’s example. In July 2007, Alp Ercil, the portfolio manager of Perry Capital’s Asian portfolio, purchase options of $150 million in NEC Electronics. However, stock price of NECE went down very soon. Perry Capital was suffering a lot from this investment due to the lack of knowledge of Japanese Company culture, and it was hard for them to cooperate with the Japanese Company Boarder. There are many problems in such kind of Ex Pat’s phenomenon, especially in those multi-national companies. Since the legal, business and culture environment in different countries are extremely different, especially between western and eastern countries. Thus, the most common problem is that the foreign manager cannot earn the respect and trust of local employees. The company/team may suffer a lot from management mistakes and maximize the manager’s profit and the company goal. For example, in the US, the goal of the company is to maximize the shareholder’s dividend. But in Japan, the most important for a company is to keep the reputation and customer’s trust.

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