Posted: May 13th, 2018

BUS 401 Case 2 – DirecTV

DirecTV is one of the largest providers of satellite television in the world. It is a U.S.-based corporation but has subsidiaries throughout Latin America in countries such as Argentina, Chile, and Venezuela.Latin America is volatile part of the world with issues of political strife and often extreme economic fluctuations. Inflation and currency exchange rates are often especially volatile in this part of the world. DirecTV Latin America even filed for bankruptcy protection in 2003 due to its many woes from the unrest and economic hardship in this part of the world. The company is currently doing much better but still faces a lot of risks.Background Material:Ramachandran, S. (Feb. 14, 2013). DirecTV Profit Rises on Latin America Growth. Wall Street Journal (Online), New York, NYYao, D. (Feb 25, 2014). DIRECTV faces currency devaluation risks in Venezuela. SNL Kagan Media & Communications ReportAssignment Expectations:After researching DirecTV and reviewing the background materials on international financial management, write a 4- to 5-page paper addressing the following questions:1. What major political events in Latin America are the biggest threat to DirecTV’s financial performance? What steps can be taken to protect against these risks?2. What major international financial or economic risks in Latin American economies should DirecTV’s financial management team worry about the most? What can they do to hedge against these risks?3. What major business risk from international competitors do you think DirecTV might face? What can it do to protect against these risks?Paper Format as follows:Set 1-inch margins on all four sides.?Use 12-point type throughout; don’t use different type sizes.?Double-space the text throughout the paper, including the reference page.?Do not put extra spaces between paragraphs or between headings and paragraphs.?Use italics or bold for emphasis, but use them sparingly or it becomes too distracting for your reader

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