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A publicly traded multinational company I chose is Novartis AG (NVS). It is a company formed in 1996 by the merger of Ciba-Geigy and Sandoz Laboratories. The company admitted having developed its strategy under the assumptions that patients would live longer, buy more prescriptions, and be increasingly cost-conscious. Novartis AG operates in over 140 countries and its products are sold in around 200 countries globally. It has 40 plants across Europe, America and Asia Pacific with approximately 130 000 employees. Novartis is headquartered in Basel, Switzerland but it has locations across the globe from Japan to China to Australia to Brazil among many others. The company has been the 3rd or 4th biggest pharma company in the world and it is currently ranked 5th in the Fortune Global 500 list. It is listed on both the New York Stock Exchange (NYSE: NVS) and the Swiss Exchange (SWX: NVS) (Castilho et al, 32)

NVS is listed on the NYSE because it has a market capitalization of over $100 billion (conglomerated assets), which is more than a large bank. This means that even if all of its uninvested cash were to be spent all at once, it would not affect its net assets, and by this rule formula, its share price would not change, despite what happens to any individual company within that same industry. The company has developed a strategy that is centered on its pharmaceutical market, which sells around $37 billion worth of products annually. It aims to maintain high growth by increasing the sophistication of the medicines it develops and selling in new markets where the investment will be worthwhile.

The factors that will affect the future movements in value of exchange rate against dollar are the economic and political changes in countries where it operates. The companies aim is to operate in countries with a stable political atmosphere with good economic prospects. The other major factor that affects the future movements in value of exchange rate is how strong its competitors are (Castilho et al, 32).

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Work Cited

Castilho, Sofia Isabel de Miranda. Project–Equity Research Novartis AG. (NVS). Diss. Institution Superior de Economic e Gestão, 2018, 31-50.