QUESTION Multinational Corporations (MNCs) are companies that operate and have assets or facilities in at least one country other than their home country. These corporations engage in business activities across national borders and often have a significant global presence. MNCs typically have operations such as manufacturing plants, sales offices, or subsidiaries in multiple countries, allowing them to access different markets, resources, and talent pools. REQUIRED Identify any MNC of your choice and answer the following questions; Total Energies i. Describe the MNC ii. Describe how the MNC is dealing with Foreign Exchange iii. Explain the exposures the MNC is faced with and how they are managing them iv. Describe how the MNC is raising funds both Locally and Internationally v. What Investment Portfolio and Diversification is the MNC Holding

i. Total Energies is a French multinational integrated oil and gas company founded in 1924 and one of the seven "Supermajor" oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total Energies is also a large-scale chemicals manufacturer.

ii. Total Energies, like other multinational corporations, deals with foreign exchange by using hedging strategies to protect against currency fluctuations. They may use forward contracts, futures contracts, options, or swaps to mitigate the risk of adverse currency movements. They also have a treasury department that monitors and manages these risks.

iii. Total Energies is exposed to various risks including market risk (such as oil price volatility and currency exchange rate fluctuations), credit risk, and operational risk. The company manages these risks through a variety of strategies including diversification of its operations across different geographical areas, hedging strategies, and maintaining a strong balance sheet.

iv. Total Energies raises funds both locally and internationally through a combination of equity and debt. They issue shares to raise equity capital and also borrow from financial institutions. They may also issue bonds in the international capital markets. The choice between these sources of finance depends on the cost of capital and market conditions.

v. Total Energies' investment portfolio is diversified across the entire oil and gas value chain, from exploration and production to refining and marketing. They also invest in renewable energy and power generation to align with global energy transition trends. This diversification helps to spread risk and increase the potential for returns.