Question 1

Despite the vast resources written about multinational Enterprises, (MNE) individuals still have a limited understanding of it. In this regard, MNEs may be defined as international Enterprises that have their business activities spread in more than one country. Other resources tend to consider multinational enterprises as those that have another branch in a different country. While, other resources seem to concur with this matter and still have an additional argument about multinational corporations. They refer to them as corporations that get at least a quarter of the total revenue collected annually away from their home country. Despite the different definitions, the bottom line is multinational enterprises have a separate branch in another country (Lewin, & Campani, 2020). Most of them have several units in both developed and developing countries.

 Thus, this accords the enterprises with numerous benefits. Among the significant gains is since the enterprises create multiple job opportunities in the different countries. The enterprises do this by technologically advancing machinery and production equipment to countries that others do not have that capability. Another benefit is that it enables the enterprise to meet the demand for its products in foreign nations without encountering the transactions associated with long-distance shipping. Thus, this allows multinational enterprises to realize more benefits. Lower cost of production means that the enterprises will reduce goods prices hence rendering consumers having more purchasing power (Lewin, & Campani, 2020). Additionally, global enterprises could take advantage of tax variations by strengthening their operations in countries with fewer levies.

Question 2

Risk management is one of the most crucial factors that I need to consider as a portfolio manager. Risk management strategy is a critical component that considers the investment strategy used by the portfolio manager. For instance, it does not add up to invest in over-aggressive market fund. The other factor to consider is what to buy and sell. Indeed, this is a factor guided by the purpose of the operation. As the portfolio manager, I would align my goal to the market and other conditions affecting my operations. The other factor I need to consider is my investment to process. In this regard, I need to make sure I have a full grasp of the processes that guidelines my investment, its objective and the long-term track record.

 In this connection, an overly compacted investment strategy is not worth my attention. The other factor I need to consider is performance. I am inclined to believe that performance strategy is essential to the portfolio and the manager himself. Strategies used in portfolio management determine performance which ultimately impacts the success or failure of the enterprise. Scholars argue that the growth of an investment portfolio is intricate and requires multifaceted approaches. Thoroughly articulating and understanding the monetary goals enables any portfolio manager to be an active financial planner (Lewin, & Campani, 2020). Thus, this aids in the growth of a portfolio steadily and slowly while overcoming all challenges encountered.