SMP20403 International Finance Individual Assignment 1 – Universiti Malaysia Perlis

CO2: Ability to formulate financial strategies that account for global economic trends.

Part A (15 marks):

Title: Impact of U.S. Tariff Policies on International Trade and Investment

Introduction

The Ministry of Investment, Trade and Industry (MITI) acknowledges the decision by the United States (US) Government to reduce its reciprocal tariff on Malaysian exports from 25% to 19%, effective 1 Aug 2025. The Malaysia-United States (US) tariff negotiations which began on 6 May 2025 were officially concluded on 31 July 2025 (Ministry of Investment, Trade and Industry, 2025).

In 2025, the United States imposed a reciprocal tariff of 25% on Malaysian exports under President Trump’s new trade policy. After several rounds of negotiation, the rate was reduced to 19%, effective 1 August 2025. This situation reflects how tariff decisions by major economies can create global impacts such as disrupting trade flows, increasing costs, and affecting investment confidence worldwide.

Assignment Task

Students are required to:

1. Explain how U.S. tariff policies affect international trade and investment patterns across different regions.
   (5 marks)

2. Analyze the implications of U.S. tariffs on Malaysia.
   (5 marks)

3. Provide personal opinion on how Malaysia should respond to U.S. tariff policies to safeguard and strengthen its international trade position.
   (5 marks)

Part B (15 Marks):

Title: Role of International Financial Markets in Supporting Multinational Corporations

Introduction

Many multinational corporations (MNCs), including those that are publicly listed in Malaysia, are actively involved in international business activities such as exporting, importing, and undertaking direct foreign investments (DFI) in other countries. These cross-border transactions generate significant financial flows between nations. This assignment aims to help students understand how international financial markets facilitate and support the operations of such corporations. It encourages students to connect theoretical concepts with real-world practices by analyzing how Malaysian public listed MNCs utilize global financial markets for financing and risk management, and to provide their own opinions and recommendations for strengthening these firms’ global financial strategies.

Assignment Task:

Students are required to:

1. Explain the functions of the foreign exchange market, international money market, and international credit market.
   (5 marks)

2. Select ONE (1) Malaysian public listed MNCs and discuss how it utilizes international financial markets to support its global operations.
   (5 marks)

3. Provide your personal opinion on the challenges and opportunities for MNCs in using international financial markets.
   (5 marks)

Instruction:

The written report should follow the guidelines below:

• Typing using Times New Roman, Font 12 and 1.5-line spacing.
• Table of contents.
• References APA style.
• Each part of the assignment (Part A and Part B) should be written within 4-5 pages.
• The assignment for Part A and Part B must be assessed based on the rubric as attached in Appendix A.

Ethical Use of AI

Students may use AI as a supportive tool, but all AI-assisted content must be paraphrased, fact-checked, and clearly acknowledged to ensure originality and academic integrity. All AI-generated content must be explicitly cited, including clear snapshots of the prompts used. Submission that relies on AI without proper contextualization, critical evaluation, or required specifications will be penalized. Failure to demonstrate transparent and ethical use of AI will results in a reduction of marks.

Plagiarism

The submitted assignment will automatically undergo a similarity check. The widely accepted Turnitin percentage is less than 20%. Plagiarism, copying and cheating will not be awarded any mark.

SMP20403 Marking Rubric

Marking Rubric Part A:

Answer

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