| Course | MAN-3720 International Management |
|---|---|
| Module | Module 3 |
| Paper type | Module 3 written assignment: international finance |
| Length | About 664 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | Bachelor of Science in Business Administration |
| Updated | October 2026 |
Free sample paper for MAN 3720 Module 3
Dollars, Dong and Getting Paid: Managing Currency and Payment Risk on a First Export Order
Student Name
Bachelor of Science in Business Administration, Thomas Edison State University
MAN-3720: International Management
Mentor Name
Month Day, Year
Dollars, Dong and Getting Paid: Managing Currency and Payment Risk on a First Export Order
Introduction
Our first order from Vietnam is expected to be about 4,000 purifiers, worth roughly $160,000 at our export price. For a company of our size, losing that payment or a large part of its value to currency movements would be serious. This paper explains the parts of international finance that bear on the order and recommends how to invoice and collect.
Multilateral Institutions and the Market
Multilateral financial institutions shape the economic setting of emerging markets. The International Monetary Fund monitors member economies, advises on exchange rate and monetary policy and lends to countries facing balance of payments problems. The World Bank and the Asian Development Bank finance development projects, including water supply and sanitation. These institutions matter to us in two ways. Their reports on Vietnam, such as the IMF's regular reviews of member economies, are reliable sources on the country's currency and financial stability. And their water projects suggest a policy interest in safe water that could raise public awareness of household treatment.
The Foreign Exchange Market and Vietnam's Regime
Currency prices come out of a worldwide market in which banks, companies and investors swap one money for another. Krugman et al. (2018) explain that in the short run rates respond to interest rates and expectations, while over longer periods relative prices and productivity pull them along. Countries choose how much to let that market decide. Vietnam operates a managed regime: the State Bank of Vietnam sets a daily central rate for the dong against the dollar and allows commercial banks to trade within a band around it. The dong has tended to weaken gradually against the dollar over time, with periods of sharper pressure when the dollar strengthens globally. The open text from Saylor Academy (2012) explains that managed regimes reduce day-to-day swings but do not remove the risk of larger adjustments.
Our Exposure
Bartram et al. (2010) found that most nonfinancial companies show far less currency exposure than theory implies, mainly because they push part of each currency swing into their prices and offset the rest through how they operate and hedge. That finding suggests our exposure can be managed with pricing and contract choices rather than complex instruments.
| Type of exposure | What it means for us | Size of the risk |
|---|---|---|
| Transaction | If we invoice in dong, a fall in the dong before payment cuts our dollar receipts | Real for any dong-priced order |
| Economic | If the dong weakens over years, our dollar-priced purifier costs Vietnamese buyers more, reducing sales | Gradual but lasting |
| Translation | Only if we own assets in Vietnam | None for now |
Global Capital Markets and Trade Finance
Our distributor will need financing to pay for inventory, and we need assurance of payment. A documentary letter of credit, issued by the distributor's Vietnamese bank and confirmed by a U.S. bank, would guarantee payment once we present shipping documents that match its terms. The cost, usually a small percentage of the order, is worth paying on a first order with a new partner. Once the partner has paid reliably, documentary collections or open account terms become possible, perhaps backed by an export credit insurance policy from the U.S. Export-Import Bank.
Recommendation
We should invoice the first orders in dollars, which places transaction risk on the distributor, and require a confirmed letter of credit. Because invoicing in dollars pushes currency risk onto our partner and its customers, we should also include a price review clause: if the dong moves more than 5 percent against the dollar over six months, both sides will review prices. That clause addresses economic exposure fairly and keeps our product affordable.
Conclusion
International finance turns a simple sale into a set of choices about currency, payment and risk sharing. Dollar invoicing with a confirmed letter of credit protects the first order, and a price review clause shares longer-term currency risk in a way that keeps the relationship and the market healthy.
References
Bartram, S. M., Brown, G. W., & Minton, B. A. (2010). Resolving the exposure puzzle: The many facets of exchange rate exposure. Journal of Financial Economics, 95(2), 148-173. https://doi.org/10.1016/j.jfineco.2009.09.002
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International economics: Theory and policy (11th ed.). Pearson.
Saylor Academy. (2012). International business. https://saylordotorg.github.io/text_international-business/
Reading the MAN 3720 Module 3 assignment instructions
The written assignment for Module 3 of MAN-3720 is one of five that together count for 40 percent; the Guided Study syllabus, the public version of the course, does not tie them to modules, so this page pairs one with the module on international finance. Expect to explain the roles of multilateral financial institutions, how the foreign exchange market works and how currency regimes differ, what exchange rate exposure a firm faces and how financial markets and trade finance tools help manage risk. Carry every idea through one order with real amounts, and finish by telling the company what to do.
How the MAN 3720 Module 3 example is put together
The paper sizes the stakes at the start: a $160,000 first order that the firm cannot afford to lose. A section on multilateral institutions explains what the IMF, World Bank and Asian Development Bank do and why their work matters to the exporter. A section on Vietnam's managed exchange rate regime explains the daily central rate and band. Three kinds of currency exposure are pulled apart in a short table, and the exposure puzzle research of Bartram and coauthors explains why prices and contract terms can absorb much of the risk. Trade finance options move from a confirmed letter of credit to open account over time, and the recommendation adds a price review clause. The conclusion explains why the first order and later orders call for different terms.
Reading the MAN 3720 Module 3 grading rubric
On international finance, marks reward correct concepts, one transaction followed through, careful reasoning about who carries the risk, good sources and tidy APA form. Papers earn credit for explaining what multilateral institutions actually do and connecting them to the firm. Correctly distinguishing kinds of exposure shows command of the topic. Recommendations that weigh who bears the risk, and how to share it fairly, show managerial judgment. Using trade finance tools appropriate to a first order with a new partner shows practical knowledge. Mentors also credit papers that state the size of the risk in money, such as the value of the order at stake, so the reader can judge whether a tool's cost is worth paying.
MAN 3720 Module 3 help: mistakes that cost marks
Students lose marks by defining the IMF and the World Bank without connecting them to a business, by confusing transaction and economic exposure or by recommending complex derivatives for a small firm. Others ignore how the firm will be paid. Build the paper around one transaction with a value and a currency, explain the exchange rate regime of the partner's country, identify each kind of exposure and choose practical tools such as invoicing currency, letters of credit and price review clauses. A free first draft of your own MAN-3720 Module 3 written assignment can be shaped around your company's transaction. Show the order value, the currency and the payment terms in one place, then explain how each tool you recommend protects that amount.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Thomas Edison State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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MAN 3720 Module 3 questions, answered
Where can I find a free MAN 3720 Module 3 sample paper?
The paper above manages currency and payment risk on a New Jersey water purifier maker's first order for Vietnam.
What is the difference between transaction and economic exposure?
Transaction exposure affects specific payments already agreed, while economic exposure affects future sales and competitiveness as exchange rates move.
What is a confirmed letter of credit?
A bank's promise to pay the exporter when matching shipping documents are presented, with a second bank in the exporter's country adding its own guarantee.
How does Vietnam manage its currency?
The State Bank of Vietnam sets a daily central rate for the dong against the dollar and lets banks trade within a band around it.
How much are MAN-3720 written assignments worth?
The five written assignments are worth 40 percent of the final grade together.