Case Study Of Situation In Petra Christian University

Case Study Of Situation In Petra Christian University
SituationIn Petra Christian University, I have taken several accounting subjects such as Principles of Accounting, Financial Accounting, Cost
Accounting, Corporate Accounting, Managerial Accounting, and International Accounting. While in finance subjects, I have taken Financial
Management and International Financial Management. Thus, I am able to say that I am familiar with the concept of finance and accounting.
TaskThere are several case studies and report in the accounting and finance courses. In the finance class, I was taught the recent issues in world
economic environment, while in the accounting class, I was taught to record the transaction and analyze the company's financial statement through
balance sheet, income statement, etc.
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International Finance Exam
International finance
FIN 412
Exam #2
MC: Examples of "single–currency interest rate swap" and "cross–currency interest rate swap" are:
A. fixed–for–floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating– rate debt obligations for fixed–rate
interest payments of the other counter party
B. fixed–for–fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one
currency for the debt service obligations of the other counter party denominated in another currency
X– C. A & B
D. none of the above
MC: In the swap market, which position potentially carries greater risks, broker or dealer?
A. Broker
X– B. Dealer ... Show more content on Helpwriting.net ...
risk–adjusted performance
D. risk of default and bankruptcy
MC: Regarding the mechanics of international portfolio diversification, which statement is true?
X– A. Security returns are much less correlated across countries than within a county
B. Security returns are more correlated across countries than within a county
C. Security returns are about as equally correlated across countries as they are within a county
D. None of the above
MC: A fully diversified U.S. portfolio is about?
A. 75 percent as risky as a typical individual stock
X– B. 27 percent as risky as a typical individual stock
C. 12 percent as risky as a typical individual stock
D. Half as risky as a fully diversified international portfolio

MC: With regard to estimates of "world beta," measures of the sensitivity of a national market to world market movements...
A. The Japanese stock market is the most sensitive to world market movements
B. The U.S. stock market is the least sensitive to world market movements
X– C. Both A & B
D. None of the above
MC: With regard to the OIP...
A. The composition of the optimal international portfolio is identical for all investors, regardless of home country
B. The OIP has more return and less risk for all investors, regardless of home country
X– C. The composition of the optimal international portfolio is identical for all investors of a particular country, whether or not they hedge their risk
with currency futures

Analysis Of International Banking
Introduction
Banking in today's era is in process of upgrading itself by joining the wave of latest technologies and trends. Currently, it is in the midst of chaos and
disruptions and is in process of reshaping its business models to alienate the traditional processes. The driving force for Banks to adopt such changes
can be a. Changing customer needs, b. Optimization of cost and Banking Operations, c. Digitization and Automation, d. Streamlining of complex and
lengthy processes and e. New competitors in the industry.
Trade Finance is one such segment that is typically driven by the traditional methods of processing and also is laid back in terms of adopting the
disruptions. This segment has not changed much in past few decades.
However, ... Show more content on Helpwriting.net ...
'The Blockchain Technology' is one of such very powerful disruption which has capability to revolutionize the Trade Financebusiness for Banks.
Blockchain Overview
A Blockchain is a secure public ledger shared by all the entities of a distributed network which stores all transaction that have ever been executed in
that network. Every transaction that is recorded over a blockchain network is irrevocable and complete transaction history is auditable. This
technology allows any participant in the business network to access all the record of the transaction. A transaction may have one or more events. All
events of the transaction are recorded in the form of a block. Once all the recent events are completed then it is saved as permanent record into
Blockchain.
Important Elements of Blockchain Technology
Bottlenecks of Traditional Trade Finance
Banking industry today is in the midst of disruptions. Trade finance is one of the area which still is driven mostly by the traditional processes and
instruments which indeed is a very crucial banking service assisting global economy. But all thanks to these unavoidable disruptions, the traditional
brick and mortar banking structures and technologies are fast alienating from the industry. These chaos of disruptions is so powerful that even Trade
Finance cannot be estranged from this flow.
Blockchain will

Finance in International Markets
FINC/ECON 3240 – International Finance Homework Solution Chapter 1 2. Comparative Advantage. a. Explain how the theory of comparative
advantage relates to the need for international business. ANSWER: The theory of comparative advantage implies that countries should specialize in
production, thereby relying on other countries for some products. Consequently, there is a need for international business. b. Explain how the product
cycle theory relates to the growth of an MNC. ANSWER: The product cycle theory suggests that at some point in time, the firm will attempt to
capitalize on its perceived advantages in markets other than where it was initially established. 4. International Opportunities.... Show more content on
Helpwriting.net ...
ANSWER: Snyder can export the clubs, but the transportation expenses may be high. If could establish a subsidiary in Brazil to produce and sell
the clubs, but this may require a large investment of funds. It could use licensing, in which it specifies to a Brazilian firm how to produce the
clubs. In this way, it does not have to establish its own subsidiary there. b.Which method would you recommend for this firm? Justify your
recommendation. ANSWER: If the amount of golf clubs to be sold in Brazil is small, it may decide to export. However, if the expected sales level
is high, it may benefit from licensing. If it is confident that the expected sales level will remain high, it may be willing to establish a subsidiary. The
wages are lower in Brazil, and the large investment needed to establish a subsidiary may be worthwhile. 15. Impact of Political Risk. Explain why
political risk may discourage international business. ANSWER: Political risk increases the rate of return required to invest in foreign projects. Some
foreign projects would have been feasible if there was no political risk, but will not be feasible because of political risk. 17. International Joint Venture.
Anheuser–Busch, the producer of Budweiser and other beers, has recently expanded into Japan by engaging in a joint venture with Kirin

Allocating Financial Risk
Allocating Financial Risk 2
Select one of two recent airport PPPs – St. Petersburg, Russia, or Rio de Janeiro, Brazil. Describe the PPP process used and what were the critical
issues that needed to be overcome? Assess the factors that will be crucial to the PPP's future sustainability.
This memo examines the public private partnership used to develop the Pulkovo airport in St Petersburg, Russia.
Pulkovo was the first airport to be developed in Russia using a PPP. The contract is between three parties: the St. Petersburg City Government, the
Pulkovo Airport Company (100% city owned) and the Northern Capital Gateway Consortium (NCG), the airport operator with the duty of organizing
the management and development of the airport. The contract started in April 2010 and will remain in force until 2039.
St. Petersburg is Russia's second largest city after Moscow with around 5 million inhabitants. The city is home to many domestic and international
companies, but its economy also relies heavily on tourism, hence transport links are crucial to the city's growth. Transport infrastructure had suffered
from long term under–investment (KPMG estimated the depletion of Russia's national airport assets between from 40% to 80%) and in 2008, amid
double digit growth in passenger traffic, the existing airport suffered from overcrowding and would be unable to cater for the 11 million annual
passenger traffic projected for 2012. It was also seen as unable to meet the increased

International Finance
Chapter 4
Practice Problems
Percentage Depreciation
Assume the spot rate of the British pound is $1.73. The expected spot rate one year from now is assumed to be $1.66. What percentage depreciation
does this reflect?
($1 66 – $1 73)/$1 73 = –4.05% ($1.66 $1.73)/$1.73 4 05% Expected depreciation of 4.05% percent
Inflation Effects on Exchange Rates
Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand
for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar?
пЃ¶ Demand for Canadian dollars should increase, пЃ¶ Supply of Canadian dollars for sale should decrease, and пЃ¶ The ... Show more content on
Helpwriting.net ...
interest rates, while U.S. investors reduce their investments in Canada's securities. пЃ¶ This places downward pressure on the Canadian dollar's value.
3
Interaction of Exchange Rates
How might this affect the value of the Canadian dollar against the Japanese yen?
пЃ¶ Japanese investors that previously invested in Canada may , p shift to the U.S. Thus, the reduced flow of funds from Japan would place
downward pressure on the Canadian dollar against the Japanese yen.
Relative Importance of Factors Affecting Exchange Rate Risk
Assume that the level of capital flows between the U.S. and the country of Krendo is negligible and will continue to be. But there is a substantial
amount of trade between the U.S. and the country of Krendo. Which affect, high inflation or high interest rates will be seen in the value of the Krendo's
currency? Krendo s The inflation effect will be stronger than the interest rate effect because inflation affects trade flows.

пЃ¶ The high inflation should cause downward pressure on the kren.
Speculation
Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $.15 to $.14 in 10 days. The following
interbank lending and borrowing rates exist:
U.S. dollar Mexican peso Lending Rate Borrowing Rate 8.0% 8.3% 8.5% 8.7%
Assume that Blue Demon Bank has a borrowing capacity of either $10 million or 70 million pesos in the interbank market, depending on which
currency it wants to borrow.

International Business Finance Worksheet 10
International Business Finance Worksheet 10
1. One of the main arguments against companies choosing to cross–list is the cost of following regulations of foreign stock markets. This cost to
cross–list may make it prohibitive for the company to list the stocks in the foreign market in the first place. In addition to the cost, the company may
not wish to provide as much information as the particular exchange requires. This can be particularly true if a foreign firm is thinking of listing on a
United States stock exchange, which has a high amount of regulation and information needed before the stock can be listed. Another main argument
against companies choosing to cross–list deals with the ownership control level that may be changed by listing on other exchanges. Cross–listing on
other exchanges adds foreign investors into the company, which does offer benefits. However, more foreign investors of a company also dilutes the
percentage of investors in the corporation that are from the domestic country. The corporation may not wish to provide several benefits of improved
company performance, such as dividends and return from a high future stock price, to a high degree of foreign investors. Instead, the corporation would
choose not to cross–list, even though it does provide benefits, to keep a high percentage of the investors from the domestic country. This keeps any
potential benefits from strong future performance of the company with domestic investors. It also prevents

Eco/372 International Trade and Finance Speech Essay
International Trade and Finance Speech
Foreign exchange rates and International trade are important aspects of economics. The United States macroeconomy's health is determined by these
concepts and their factors.
International Trade
Exports and imports are what encompass international trade balance. When there are more exports over imports a trade surplus happens and when
there are more imports over exports a trade deficit happens. A country will acquire large quantities of foreign assets when it runs in a trade surplus so
it can lend internationally to other countries. A country sells of its assets to other countries and becomes a big debtor nation when it runs on a trade
deficit. A ... Show more content on Helpwriting.net ...
As a result, their businesses may have a difficult time competing with those particular products made in China. If they match China's prices, the
domestic businesses may have minimal profit at best. Consumers would benefit from the import surplus due to having more choices in the market and
allowing for a lower overhead by buying cheaper electrical machinery products.
Impacts of International Trade
International trade may also have an influence on the Gross Domestic Product or GDP, domestic markets, and university students. The GDP is "the
total market value of all final goods and services produced in an economy in a one–year period" (Colander, 2010, p. 183). The GDP can contract if the
U.S. is consuming more than it produces. As a result, if the imports are greater than the exports, domestic markets may lose earnings because income
is being generated in the world market. If the U.S. has more exports than imports, domestic markets can increase their profit margins because of the
demand for their products through international trade. University students are also affected by this method of trade because of the jobs that can be
created or that are decreased. University students on decided career paths or those who have already began their career, will benefit if there is a trade
surplus. With a substantial trade surplus, it can create more job

Thomson University Personal Statement
Through my lifetime, I have witnessed the ever–changing world of business and the myriad of global and regional, socioeconomic and political
changes accompanied with it. This has not only shaped my actual reality, but has also sparked a genuine interest in global affairs and International
economics and finance. From events of the 2008 global financial crisis, to more recent events in my home country Nigeria, who is currently in an
economic recession, triggered by a drop in oil prices and financial mismanagement, it is a given that the world is a reflection of global interrelations,
and with this, I describe economics as the core of world discussion and finance as its driving tool. This is the reason I am determined to devote myself
to the cause of developing an expertise in the interaction between politics, international finance and global markets with the hopes of contributing to the
building of an accountable and democratic economy both at home front and on an international platform.
My first degree in Mining Engineering has helped me develop a natural affinity for "thinking outside the box", being observational and leaving no
option unturned when faced with a challenge or a task. This was one of the major reasons why I pursed an independent study research on the ... Show
more content on Helpwriting.net ...
An ideal career for me perfectly fuses the practices of finance and the capacity to solve both economic and social problems in the real world: a career
that deals with sustainable investments that have social or developmental impacts. On this course I would like to probe specific problem areas such as
the application of quantitative analysis to understanding various issues in global finance and the interplay of international business and the global
economy. My research interests are in International trade and development, emerging and frontier capital markets, international finance and banking,
and macroeconomic policy & financial

International Finance Problems Essay
PROBLEMS 1. Mississippi Mud Pies, Inc. needs to buy 1,000,000 Swiss francs (CHF) to pay its Swiss chocolate supplier. Its banker quotes bid–ask
rates of CHF1.3990–1.4000/USD. What will be the dollar cost of the CHF1,000,000? вЂЁAnswer: The bank's bid rate is CHF1.3990/$. That is the
price at which the bank is willing to buy $1 in return for CHF1.3990. The bank sells dollars at its ask price CHF1.4000/$.вЂЁMississippi Mud Pies
must sell dollars to the bank to buy CHF. Therefore Mississippi Mud Pies will receive the bank's bid rate of CHF1.3990/$. вЂЁThe dollar cost of
CHF1 million is consequentlyвЂЁCHF 1 million / CHF1.399/$ = $714,796 2. If the Japanese yen–U.S. dollar exchange rate is ВҐ104.30/$, and it takes
25.15 Thai bahts to ... Show more content on Helpwriting.net ...
What would be Deutsche Bank's direct asking price for yen (в‚¬/ВҐ)? вЂЁAnswer: The direct asking price of euro per yen (в‚¬/ВҐ) is the price at
which the bank will sell yen for euros. The bank would want this to be the same as the price at which it sells euros for dollars (the bank's ask price)
times the price at which it sells dollars for yen. This latter price is the reciprocal of the price at which the bank buys dollars for yen, which is the bank's
bid price of yen per dollar. Thus, the ask price of euros per yen should be вЂЁв‚¬0.9855/$ п‚ґпЂ [1 / (ВҐ104.30/$)] = в‚¬ 0.009449/ВҐ
1
2 Chapter 2: The Foreign Exchange Market 5. Western Mining of Australia has called Mitsubishi Tokyo Financial to get its opinion about the Japanese
yen–Australian dollar exchange rate. The current rate is ВҐ67.72/A$, and Mitsubishi thinks the Australian dollar will weaken by 5% over the next year.
What is Mitsubishi's forecast of the future exchange rate? вЂЁAnswer: If the Australian dollar weakens by 5% over the next year, it will take 5% fewer
Japanese yen to purchase the Australian dollar. Thus, the forecast is вЂЁВҐ67.72/A$ п‚ґпЂ (1 – 0.05) = ВҐ64.334/A$ 6. Consider the following spot
and forward rates for the yen–euro exchange rates: вЂЁIs the euro at a forward premium or discount? What are the magnitudes of the forward
premiums or discounts when quoted in percentage per annum for a 360–day year? вЂЁAnswer: The forward rates of yen per euro are lower than the
spot rates.

Eco 372 Week 5 Individual International Trade and Finance...
| |
|The U.S. Macroeconomy State. |
| |
| |
| | ... Show more content on Helpwriting.net ...
However, not everything is rose color. As a result of the economic expansion and diversity of goods and services provided by theinternational trade,
prices are more competitive increasing the market competition among producers, which provide domestic consumers with cheaper products.
One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best.
When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will
be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become
specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and
services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and
limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed
taxes on trading transactions adding them to the cost of importation, and have the purpose of restricting and/or limiting the imports of goods and
services into a country. These government

Harvard Business Case of International Finance , China to...
China: To Float or Not To Float?
Executive Summary
On July 21, 2005, China revalued its decade–long quasi–fixed exchange rate of approximately 8.28 yuan per U.S. dollar by 2.1% to 8.11.
Simultaneously, the People's Bank of China announced that the daily trading band of 0.3% against the dollar would be maintained. Many analysts and
economists believed that the real trade–weighted value of the renminbi was undervalued by up to 30% to 35%.
Companies that produce in China for the overseas market, retailers, and importers clearly benefit from an undervalued Chinese currency, as well as
from the abuse of workers' rights. On the other hand, companies actually producing in the foreign countries – whether for the ... Show more content on
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Impact of growth in China as well as the rest of the world by the changes in exchange rate policy As most observers took it for granted that the yuan
was undervalued, one specific study estimated yuan undervaluation against the U.S. dollar of at least 35% based on the price level of goods and
services in China compared with those of its trade partners. As a result, there will probably be a sharp appreciation of renminbi if Chinese
government switches over from the fixed exchange rate policy to flexible exchange rate policy. A common figure cited for a 20 to 25 percent move of
renminbi would be devastating to China, which would cause deflation, cut economic growth, cut off foreign direct investment and would destabilize
Asia. On the other hand, other low–cost countries in Asia may benefit from the shift of FDI and production of multinational companies. However, most
high–wage countries like U.S. may still face a rising trade deficit because their imports from other low–wage countries would replace products made in
China.
Sustainability of the current exchange rate policy
Many economists – focusing on the strain the tightly managed exchange rate imposed on China's economy – agreed that China needed to institute
more flexibility. They noted that not only was the exchange rate expensive to sustain, but it contributed – as well as limited China's flexibility in
responding – to a

Essay on finance case vanguard international growth
Issues
1. Explain why an individual investor might want to invest in an international growth fund?
2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an
international funds, and those risk that would be unique to an international fund.
3. Discuss how the fact that foreign companies are not subject to the same accounting, auditing, and financial reporting standards and practices as U.S.
companies poses a risk not typically encountered when investigating in the stock of U.S. companies.
4. Consider the allocation of funds assets by region. Speculate as to why the portions of fund assets are distributed in this manner.
5. Consider the country ... Show more content on Helpwriting.net ...
The International Growth Fund annual report that ended in August 31, 2009 showed that 94% of the Funds portfolio was invested in 177 non U.S.
stocks and 6% was in temporary cash investments. All values are presented in the tables.
Analysis
1. An individual investor may want to invest in an international growth fund because of trying to expand or growth in the foreign market. Another
reason would be to diversify and acquire more knowledge about the foreign economy.
2. Some risks that are common between domestic and international funds are: losing money and management risk. Any investment has some type of
risk. Losing money is the first risk that every investment has whether it is domestic or international. Management risk is the bad management decisions
that a company makes. Some unique risks that only international funding has are: economic risk, country/regional risk, and currency risk. Currency risk
is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in the currency exchange
rates. Economic risk is the stability of a country's economic. Country/regional risk is political, financial troubles, and natural disasters that will affect
the value of securities issued by companies in foreign countries or regions.
3. Foreign companies are not subject to the same U.S. Accounting Practices the foreign stock and bond markets operate differently from the

Crosswell
PEPPERDINE UNIVERSITY
THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT
LEN RUSHFIELD MBA 610.63 INTERNATIONAL FINANCE SPRING 2005 WEDNESDAY 6:00 PM– 10:00 PM WESTLAKE VILLAGE
CENTER
SYLLABUS
1
International Finance MBA 610.63 Westlake Village Center Wednesday 1/5
–2/16/05 Len Rushfield (310) 474–5848 (603) 843–9683 (efax)
leonard.rushfield@pepperdine.edu/ asiaptner@aol.com Course Objectives MBA 610.63 is intended to provide a foundation of understanding of
international finance and the critical options for corporate financial management within the global markets. Intensive reading will establish the basis of
information on international financial structure, processes and techniques. Cases will identify important real ... Show more content on Helpwriting.net ...
Students are responsible for all information given during the class instruction. If a student misses a class or arrives significantly late a make–up
assignment may be required and incorporated in the participation grade. Students missing one class will need to make arrangements with the instructor
for special make–up work. The instructor should be informed of absences prior to the class. Absences should involve urgent and unavoidable reasons.
Students missing two or more classes may not receive credit for the course. Conmduct "The University expects from all of its students and employees
the highest standard of moral and ethical behavior in harmony with its Christian philosophy and purposes. Engaging in or promoting conduct or
lifestyles inconsistent with traditional Christian values is not acceptable. The following regulations apply to any person, graduate or undergraduate,
who is enrolled as a Pepperdine University student. These rules are not to be interpreted as all–inclusive as to situations in which discipline will be
invoked. They are illustrative, and the University reserves the right to take disciplinary action in appropriate circumstances not set out in this catalog. It
is understood that each student who enrolls at Pepperdine University will assume the responsibilities involved by adhering to the

Exercise Questions for Mid–term Exam 1. Which of the following factors of production DO NOT flow freely between countries?
A) Labors and Land
B) Financial capital
C) (Non–military) Technology
D) All of the above factors of production flow freely among countries.
2. Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and ВЈ4.2474 in British
pounds. Therefore, the exchange rate of pounds per dollar under this fixed exchange regime was
A) ВЈ4.8665/$.
B) ВЈ0.2055/$.
C) always changing because the price of gold was always changing.
D) unknown because there is not enough information to answer this question
3. The post WWII international monetary agreement that ... Show more content on Helpwriting.net ...
pound, yen, and Chinese yuan.
21. A ________ transaction in the foreign exchange market requires an almost immediate delivery (typically within two days) of foreign exchange.
A) spot
B) forward
C) futures
D) none of the above
22. A forward contract to deliver British pounds for U.S. dollars could be described either as ________ or ________.
A) buying dollars forward; buying pounds forward.
B) selling pounds forward; selling dollars forward.
C) selling pounds forward; buying dollars forward.
D) selling dollars forward; buying pounds forward.

23. A common type of swap transaction in the foreign exchange market is the ________ where the dealer buys the currency in the spot market and
sells the same amount back to the same bank in the forward market.
A) "forward against spot"
B) "forspot"
C) "repurchase agreement"
D) "spot against forward"
24. The ________ is a derivative forward contract that was created in the 1990s. It has the same characteristics and documentation requirements as
traditional forward contracts except that they are only settled in U.S. dollars and the foreign currency involved in the transaction is not delivered.
A) nondeliverable forward
B) dollar only forward
C) virtual forward
D) internet forward
25. If the direct quote for a U.S. investor for British pounds is $1.43/ВЈ, then the indirect quote for the U.S. investor would be ________ and the direct
quote for the British investor would be ________.
A) ВЈ0.699/$;

Sources Of Finance For Synergy International Limited
This report will research available sources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of
approximately ВЈ225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information
needs of the different decision makers.
There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares
although there would be issue costs. Finance, in the way of term loans or a mortgage could also be sourced from banks and other financial institutions;
often these are secured with assets which is usually land and property if a mortgage is being sourced.
To avoid ... Show more content on Helpwriting.net ...
There are short term external sources of finance available in the form of a bank overdraft which is flexible and can be increased/decreased
instantaneously (subject to bank approval). These can be inexpensive to arrange with competitive interest rates but these rates are higher than a term
loan and this is not a secure form of finance as a bank overdraft could become repayable on demand.
Another source of short term external funding to be considered is asset based finance which is utilised by debt factoring which will reduce tied up funds
in the customer accounts and is outsourced to a subcontractor. According to Dyson,
'there are two types of factoring: recourse factoring, where an entity obtains a loan based on the amount of its debtor balances and non–recourse
factoring, where the debtor balances are sold to a factor and the factor then takes responsibility for dealing with them. Factoring is a convenient way of
obtaining ready cash but either the interest rate on the loan or the discount on the invoices may be high', (2010:437).
Short term Internal sources of finance can be achieved by using tighter credit control, therefore exercising good cashflow management by reducing
terms and payment period to customers although potential lost sales and the reputation of the company should be considered together with credit
policies adopted by rival businesses.
Synergy International Limited could also improve cashflow by

International Finance, Exchange Rates And Also Balance Of...
In this paper I will be going over and discussing what international finance, exchange rates and also balance of payments. I will be talking about
what they are, what they do, and how they affect us an economy and country. I will be discussing the basic definitions, and the basic concepts of
their duties. First I will be going over international finance and the role it plays in our daily lives. Then I will discuss the price differences between
items in the United States and Germany. I will add and compare them together. I will also go over what the concept balance of payments are.
International Finance International finance is defined the study of international monetary economics, which involve the interaction of international
transactions. (Investopedia, 2015) These transactions consist of factors, such as national income, money and prices. The international monetary system
is made up of institutions, international organizations, governments, and private economic entities that all participate in the exchange of financial
assets worldwide. (Smith, 2012) With international trade, international finance is the result of the fact that economic activity is affected by the
existence of nations. If there weren't any national economies, then we would not have this field. If we didn't have international trade, we would not
need international finance. Countries do trade with each other. Some countries, not all but many of them use their own currencies we have to wonder
about how

The Economist, A And Opinion On International News,...
In November 2012, The Economist published "In Need of Help". The Economist is a weekly newspaper that offers "insight and opinion on
international news, politics, business, finance, science, and technology" (Economist.com). James Wilson established The Economist in 1843. A group
of editors help write out the weekly editorials for The Economist. The main audience usually appeals to the Liberals. The Economist offers an online
edition and a printed edition in order to broaden its audience. The weekly newspaper is printed in six different countries; though all of the readers
receive the same editorial material, the words and advertisements differ. The Economist is written with a common conversational language type of text.
The editors want the readers to be able to understand exactly what they are reading. The Economist successfully argues that poor people in America
need a voice and support through their use of statistics, and stories.
Poverty is defined as "the state or condition of having little or no money, goods, or means of support" (Dictoionary.com). The article was based out of
Sumter, South Carolina which is a city with a small population. The editors chose a city that is truly poverty stricken in order to record the fullest
extent of poverty for their readers. Through the editor's use of the rhetorical devices of logos, ethos, and pathos they discuss the poverty stricken people
in America the article uses relatable examples that convince the readers that the

International Finance Homework
HW6 Assignment
FIN465 – Chapters 15,16,17
Instructor: Dr. Blaise Roncagli
You may use your book and notes when working on these problems, and you may work in groups with others, but the final product that you submit for
grading must be your own work. Follow the instructions provided in this handout very carefully. Failure to follow instructions may result in loss of
points.
Chapter 15 Problems
15–1 Murphy Toys Inc., a U.S.–based MNC, has screened several targets. Based on economic and political considerations, only one eligible target
remains in Malaysia. Murphy would like you to value this target and has provided you with the following information:
Murphy expects to keep the target for three years, at which time ... Show more content on Helpwriting.net ...
Valuation of Malaysian Target Based on the Assumptions Provided
(numbers are in millions)
Year 1Year 2Year 3
Revenue Cost of Goods Sold Gross Profit
Selling & Admin. Exp. Depreciation Earnings Before Taxes
Tax (35%) Earnings After Taxes
+Depreciation –Funds to Reinvest

Sale of Firm
Cash Flows in MYR Exchange Rate of MYR$.25$.25$.25 Cash Flows in $
PV (20% disc. rate) Cumulative PV
Value of Malaysian target to Murphy = _______________
b) Will Murphy Toys Inc. be able to acquire the Malaysian target for a price lower than its valuation of the target? Explain.
Chapter 16 Problems
16–1 Your text lists six strategies that Multinational Corporations can use to reduce exposure to a host government takeover of a subsidiary. List and
describe all of these strategies.
Chapter 17 Problems
17–1 An MNC has total assets of $100 million and debt of $20 million. The firm's before–tax cost of debt is 12 percent, and its cost of financing with
equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm's weighted average cost of capital?
17–2 Curtis Industries.is an MNC with a beta of 1.3. The U.S. stock market is expected to generate an annual return of 11 percent. Currently, Treasury
bills yield 2 percent. Based on this information, what

International Trade And Finance ( Bus571 )
Ntec
Concordia Institute of Business
Submitted to: Adrian liew
Course: Diploma in Business Management (Level–7)
Subject: International trade and finance (BUS571)
Submitted By: Amanpreet singh bajaj
Student ID:CIB00002YB
Assignment: International trade
Introduction
Quality NZ is a niche supplier of New Zealand's first quality products and services to the rapidly expanding Indian market, with a specific focus on
the food and Beverage, Tourism and Education sectors . Quality NZ has ownership of a number of subsidiaries that represents us in both NZ and
India (through our Indian based import Company) there products are all personally selected to ensure only the finest Quality is presented to our
customers in india . With the deep passion India's have for Cricket , Quality NZ is privileged to have Sir Richard Hadlee as our Patron ( and a
shareholder ) and Company Ambassadors , Stephen Fleming Daniel Vettori and Brendor McCullana The networks and relationships formed through
our cricketing representatives and our Indian based staff provide us with significant credibility to the Indian market.( www.qualitynz.com)
www.qualitynz.com
Business units and subsidiared :–
Fonterra Brands

Consumer goods business
Fonterra Ingredients
Fonterra Global Trade Dairy ingredients supplier to the globally traded market
Fonterra foodservices Hospitality supplies
Fonterra Group Manufacturing
Fonterra's

Essay on International Finance
3209AFE INTERNATIONAL FINANCE
Tutorial 5 Answers
Chapter 10
10.Translation Exposure. Consider a period in which the U.S. dollar weakens against the euro. How will this affect the reported earnings of a
U.S.–based MNC with European subsidiaries? Consider a period in which the U.S. dollar strengthens against most foreign currencies. How will this
affect the reported earnings of a U.S.–based MNC with subsidiaries all over the world?
ANSWER: The consolidated earnings will be increased due to the strength of the subsidiaries' local currency (the euro).
The consolidated earnings will be reduced due to the weakness of the subsidiaries' local currencies.
12.Economic Exposure. Longhorn Co. produces hospital equipment. ... Show more content on Helpwriting.net ...
Its New Zealand dollar revenues on sales to New Zealand invoiced in New Zealand dollars are expected to be NZ$600 million.
c.Its anticipated cost of materials is estimated at $200 million from the purchase of U.S. materials and NZ$100 million from the purchase of New
Zealand materials.
d.Fixed operating expenses are estimated at $30 million.
e. Variable operating expenses are estimated at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount).
f.Interest expense is estimated at $20 million on existing U.S. loans, and the company has no existing New Zealand loans.
Forecast net cash flows for St. Paul Co. under each of the three exchange rate scenarios. Explain how St. Paul's projected net cash flows are affected by

possible exchange rate movements. Explain how it can restructure its operations to reduce the sensitivity of its net cash flows to exchange rate
movements without reducing its volume of business in New Zealand.
ANSWER:
Forecasted Net Cash Flows for St. Paul Company
(Figures are in millions)
NZ$ = $.48NZ$ = $.50NZ$ = $.54
Sales
U.S. $100$105$110 New ZealandNZ$600 =288NZ$600 =300NZ$600 =324 Total$388$405$434
Cost of materials U.S.$200$200$200 New ZealandNZ$100 =48NZ$100 =50NZ$100 =54 Total$248$250$254
Operating expenses U.S.: Fixed$

Under Armour Is Gaining Market Share And Challenging Nike
Abstract
Under Armour is gaining market share and challenging Nike in the sports apparel industry.
However, Under Armour is having major issues with inventory management and managing cost.
Inventory cost has increased steadily over the past three years and is now at the point where it is
out weighing revenue.
UNDER ARMOUR: CHALLENGING NIKE IN SPORTS APPAREL
3
CASE DESCRIPTION
Under Armour, Inc., was founded in1996, by Kevin Plank, by a former University of
Maryland football player. The company was born out of an idea to make a T–shirt that provided
compression and "wicked" or unbelievable perspiration from the individual's skin and thereby
regulating body temperature and eliminating the discomfort of ... Show more content on Helpwriting.net ...
The company has built an incredible authentic brand in relatively a short period. The
company has been in existence for a little over 15 years and has made huge strides in the textile,

apparel, and luxury goods industry. With success come challenges, and therefore a need for
strategic adjustments. The company's strategy lines up well with the sports apparel industry key
success factors. However, the company has a few weaknesses and threats they need to address in
order for the company to continue on the path of steady growth and stability.
The case study revealed there is a huge issue with inventory management. Under
Armour, inventory strategy is to have enough inventories to fill orders quickly. The company's
year–end 2011 financial statement revealed inventory cost had exceeded revenue gained
UNDER ARMOUR: CHALLENGING NIKE IN SPORTS APPAREL
4
companywide. The increase has caused the days of inventory to increase from 121.4 days in
2009 to 155.8 in 2011 (Thompson et al., 2014, p. c–52). Under Amour's product days of
inventory is much higher than the sports apparel industry and that of its competitors. This
revelation has caused management to consider reducing the products offered by 20 percent.
The other issue revealed is that Under Armour does not own any patents for its products.
This issue poses a huge threat to the company. Under Armour has a group

Eco372International Trade and Finance Speech
ECO/372
June 7, 2012
International trade and finance speech
Hello ladies and gentlemen hope you day is going well so fair. My name is Linda, I wanted to come out and speak with about the International trade and
finance I will be handing out a booklet that show you what I will talking about if you should have an question write the down and I will try address
them all after my speech. In many ways the United States and Japanese are the leading opponents in the international trade since both countries
manufacture numerous amounts of the same goods. For instance, Toshiba's major competitor in the personal... Show more content on Helpwriting.net ...
International trade barriers
You may come across the following problems dealing with the global organizations or multinational organizations in the worldwide business activity
вћў Quotas–The quotas are the highest quantity of goods and services that is capable of being imported or else exported at particular period of time.
One this happen it forces the company's to limit their international trade transactions.
вћў Tariffs–Tariff is a government tax that is use to protect the domestic companies by inflict on goods and services with the intention of being
imported or exported from a country
вћў Taxation – firms functioning when dealing with a different country the subject to that country's laws and regulations.
Conclusion
In the midst of the help from the extremely advanced transportation, modern production methods, rapid industrialization and the increasing facilities of
outsourcing of trade and services the international trade organization is increasing and decreasing very fast in the globe. The international trade

account has a good distribute of a country's gross on domestic product. It is in addition one of most important foundations of income designed for the
developed as well as to developing country. For the reason that of many country benefits from the international trade approximately every one in the

Cross Border Government And The Modern International...
Cross–border government borrowing plays an integral role in the modern international finance system. Cross–border government borrowing enables
governments to substantially increase their access to cheap credit and can be a particularly attractive option to finance government programs. While
raising taxes or cutting government expenditure can be politically treacherous, borrowing in the form of government–issued–bonds enables
governments to fund programs and promote growth, which is especially important in developing nations, while "smoothing over" the costs over a
longer period of time in the future. And while governments may be able to issue and sell bonds to exclusively its domestic population, doing so is less
desirable. For one, the limited amount of domestic creditors means the government will be forced to pay higher interest rates on their bonds. Secondly,
issuing bonds to exclusively the domestic population is more contractionary than the alternative of selling bonds to the international community at
large, as it takes money out of the money supply, which can slow economic growth. Therefore, in order to eschew some of the negative effects that
come with selling bonds exclusively to a domestic population, many governments are willing to engage in cross–border governmental borrowing.
While there are some risks associated with cross–border government borrowing, the opportunities that cross–border governmental lending presents in
terms of its ability to produce growth,

Case: International Trade and Trade Finance
FITTskills: International Trade Finance
Case Study #1: New Modes of Trade Finance
Trade finance in the twenty–first century: plug and pay? Palate–Able Delights (PAD) is a niche retailer of high–end food products imported from
various parts of the world. Iranian saffron and caviar, French champagnes, Italian truffles and olive oils, vintage balsamic vinegars, fine cheeses, reserve
wines from the leading vintners, even limited–availability spring waters...if a culinary delight exists, Palate–Able Delights has a mission to discover it,
then share it with appreciative clients who quite happily pay premium for the pleasure. PAD has been very successful as an importer, but has packaged
such unique ... Show more content on Helpwriting.net ...
For now, the company is fine with payment and settlement solutions that will handle small volumes and have maximums on transaction value. The
company CFO has directed a project team in finance to review some non–traditional settlement options, contrast them with more established options
and report findings and recommendations. You have been appointed to lead the assessment team, to determine whether such solutions are viable for
PAD.
© FITT
1
FITTskills: International Trade Finance
Major Considerations Security Internet–enabled business, including online financial transactions, has evolved significantly over the past decade, from
blue–sky vision to practical tool and enabler. Despite the recognized progress, security remains a legitimate concern in considering online payments – as
much in terms of the transaction and the flow of payment, as in terms of the overall risk profile of a transaction. While PAD is generally focused on

retail sales, the company is looking at larger shipments to certain markets, and may face exposures as high as $150,000 in a single deal. Open account
Banks across the globe are recognizing that importers and exporters are shifting significant business volumes – in fact, the majority of trade – to open
account terms. Some of the financial institutions have interesting offerings in this space, and Palate–Able Delights could benefit from doing business
on open

Impact Technology Has Brought on the Management of...
Findings : To identify the positive and negative impact that changes in technology have brought on the management of international finance. With
internet being one of the developments of IT, the results showed that it has culminated in improved customer convenience. Yet despite other advances
in the management of IF, this arm has thrashed to fully control the power and promise of technology, with the customers looking forward to solutions
that are not only faster and cheaper, but that also provides customer convenience and efficiency. Convenience is much related to access to a service at
any time , hence the customers are now able to make even across the borders payments from their homes through the internet which is more convenient
than actually going to the bank to make a payment. 87percent of the respondents agreed that the change had brought a positive effect in the way the
internal finance transactions are now being managed with 55 percent strongly agreeing. The positive impacts of the evolution of IT on the management
of international finance include greater efficiency, increased transaction volume and improved customer convenience. The internet is an example of
technology that has brought about increased transaction volume. According to the research that was conducted, 42 percent of the organisations that
participated strongly agree, while 18 percent agree and 40 percent are indifferent that increased transaction volume was a result of the internet. Greater

International Trade and Finance Speech Essay
Economics Paper 5
Financial Pitfalls 2
Ladies and Gentlemen of the House, good afternoon to you all. I would like to thank you for the opportunity to speak to you this today on such an
important topic – our economy.
Our economy is in crises mode. To say that our economy has slowed down would be an understatement. The economy, to date, has taken a step
backwards and the direction we are heading will take us from a record long–lasting recession to an all–out financial depression.
Americans consume far more goods than we produce on a monthly basis. What that means, simply put, is that we continue to build more debt and get
poorer with every passing month. Think of it ... Show more content on Helpwriting.net ...
By producing quality parts at a cheaper rate is nothing new but the Chinese are being criticized by many for benefitting from illegal currency
manipulation which leads to unfair trade policies. These policies pose a real threat to American automotive jobs in the near future.
International trade has a significant effect on the Gross Domestic Product. The GDP is the true market worth of officially recognized goods or services
produced in a country. Think about this for a moment – if you were to go into a department store and found two shirts that were identical in color,
material and stitch but one was priced ten dollars higher than the other. Which one would you choose? Easily you would pick the cheaper product and
that is the issue American consumer's face each day.
Larger corporations have the ability to mass–produce products and pay their workers far less than those here in the states. They do this across the
globe in what is called slave labor. As a result, there are fewer jobs available in the United States, more across the globe, and more goods being
imported into the country and a more dramatic effect on our economy.
Financial Pitfalls 4
We have exhausted our means to generate additional income for our nation through tariffs and sanctions on goods being brought into the country. The
taxes levied on goods and the limits placed on incoming products and goods can impact and possibly obstruct international trade.
This

Globalization and International Finance, Questions and Answer
Q1. History of your topic (i.e. product, country(ies), article, etc)? Please explain in detail your topic selection. Globalization is defined as moving
towards a world in which barriers to cross–border trade and investment are declining; distance is shrinking due to new advance in transportation and
telecommunications technology, material culture is starting to look similar the world over; national economies are merging into an interdependent,
integrated global economic system (Hill). The word itself. "globalize", appeared in the 1960s meaning to "make global in scope or application".
Can be traced from the Silk Road, route between China and the Mediterranean Sea, which promoted the exchange of ideas and knowledge, along with
trade ... Show more content on Helpwriting.net ...
Same way, the increase in income allows India allows to buy from the US. Free trade benefits all. Also, the wage gap between developing and
developed nations is closing due to economic growth. When outsourcing to lower–wage countries, it contributes to higher unemployment and lower
living standards in their home countries. Free trade allows the goods to be produced thru specialization that they are more efficient in, while importing
the goods that they cannot produce as efficiently.The cons are That outsoucing has led to depressed wages in developed countries, by moving firm
activities to countries where wages are lower and there is loss of national soverignty. The benefits ofglobalization outweigh the costs.As country gets
rich there is more strict environmental standards.
5. Please explain the policies and/or government dilemmas, if any. Globalization has eroded national soveirignity. Government must devise new
strategies for managing programs effectively in a globalized world. Government must adapt to fit traditional vertical systems to the new challenges of
globalization and integrate new horizontal sysstems to the traditional vertical ones. Furthermore, the government must enhance its ability to govern and
manage the transformed environment. New strategies for efficient management and accountability must be made. North American Free Trade
Agreement (NAFTA) was passed between Canada, Mexico and United States was created after Mexico

The Advantageous Of Petrodollar And Islamic Finance...
3.7.The advantageous of Petrodollar to Islamic Finance
Petrodollar flows have been among the major factors supporting the growth of the Islamic finance industry ever since the 1960s GIFF (2010). The
rising petrodollar flows in global markets imply continued and increasing petrodollar investments in the Islamic finance sector. This has led to a surge
of interest in the Islamic Finance sector, with more and more countries positioning themselves as strategic locations to tap into part of this abundant
pool of funds. For instance, a number of countries worldwide have announced their plans to issue Sukuk (Islamic bonds) and thus meet their financing
needs by attracting high net worth investors (HNWIs) and wealth from the Middle East region. HNWIs are particularly on the look–out for efficient and
secure jurisdictions for investing their funds, more so in the context of the present economic downturn . Operating in a facilitative business
environment and reducing cost of operations are deemed instrumental factors for market players. Accordingly, a number of jurisdictions have actively
encouraged the development of their Islamic capital markets as a key strategy for attracting both HNWIs and Islamic finance businesses . In particular,
it has been observed that jurisdictions from across the world are developing their Islamic capital markets by utilising the efficiency provided by
Offshore Financial Centres (OFCs) to structure Shari'ah compliant products which adhere to the

5. Foreign Currency Futures Futures contracts are designed to minimize the problems arising from default risk and to facilitate liquidity in secondary
dealing. In the United States, the most important market for foreign currency futures is the International Money Market (IMM) of Chicago, a division
of the Chicago Mercantile Exchange. The best way to understand these contracts is to compare them with forward transactions. Like forward contracts,
currency futures contracts are, in principle, contracts to deliver a given amount of currency on a given date and at a pre–specified price to be paid later
on. Like forward contracts, futures contracts have a zero initial market value: neither the buyer nor the seller has to pay anything... Show more content
on Helpwriting.net ...
Open High Low Settle Change Lifetime High Low JAPAN YEN (CME) пЈ§ 12.5 MILLION YEN; $ per yen (.00) Sep .9458 .9466 .9386 .9389 –.0046
.9540 Dec .9425 .9470 .9393 .9396 –.0049 .9529 Mr94 .... .... .... .9417 –.0051 .9490 .7945 .7970 .8700 Open Interest 73,221 3,455 318 Est vol 28,844;
vol Wed 36,595; open int 77,028, + 1,820 The first line shows the size of the contract (12.5 m yen) and states that the prices are stated in USD cents.
The June 1993 contract had expired, so the tree contracts being traded on 29 July 1993 are the September and December 1993 contracts, and the
March 1994 contracts. Note that there was no trading on the March 1994 contracts for that day. The different headers are: Open: The price at the start
of trading on 29 July. High and Low: The highest and lowest transaction prices on 29 July. Settle: The settlement price on 29 July (representative of
prices around the close). Change: The change in the settlement price between 28 July and 29 July. Lifetime High and Low: The highest and lowest
prices during the life of the contract. Open Interest: The number of outstanding contracts (note: trading is concentrated in the nearest maturity contract).
The last

International Finance: Study Notes
1) Market seeker design strategy focuses on current market, and current consumer's needs for quick return on investment. For example US automobile
firms manufacturing in Europe for local consumption are an example of market–seeking motivation. 2) Raw Material seekers extract unfinished goods
used in the manufacture of a product. For example, a steelmaker uses iron ore and other metals in producing steel. A publishing company uses paper
and ink to create books, newspapers, and magazines. Raw materials are carried on a company 's balance sheet as inventory in the current assets
section. 3) Political safety seekers acquire or establish new operations in countries that are considered unlikely to expropriate or interfere with private...
Show more content on Helpwriting.net ...
Blocking of funds is an often used banking procedure to ensure that the same funds are not used twice. Often more beneficial to an investor than a bank
guarantee. 2) Ownership – Is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual
property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties 3) Religion
Heritage – Is the faith in which a person was predominantly raised or the faith a person 's parents or previous generations have traditionally held.
4)Terrorism – Is the systematic use of terror especially as a means of coercion. No universally agreed, legally binding, criminal law definition of
terrorism currently exists. Common definitions of terrorism refer only to those violent acts which are intended to create fear (terror), are perpetrated
for a religious, political or ideological goal, deliberately target or disregard the safety of non–combatants (civilians), and are committed by
non–government agencies. Some definitions also include acts of unlawful violence and war. The use of similar tactics by criminal organizations for
protection rackets or to enforce a code of silence is usually not labeled terrorism though these same actions may be labeled terrorism when done by a
politically motivated group. The word "terrorism" is politically and emotionally charged, and

International Trade and Finance
Linda Luc Duong
ECO/372
August 27, 2012
Matthew J. Angner
When there is a surplus of imports brought into the United States it means that the price of the products will drop. Companies in the United States
are competing with the Chinese made products will suffer from price drops on goods. Lower prices on goods will benefit consumers. Large screen
Liquid Crystal Display (LCD) and High Definition Television (HDTV) is a good example. Because of the recession there has been a surplus of large
screen LCD and HDTV. Not many people can afford or buy them with the high prices. Large screen LCD/HDTV is much cheaper than what it was
four years ago.
The effect of international ... Show more content on Helpwriting.net ...
The dollar must be raised so that there is a high–demand for the United States dollar. The government must promote the qualities and products made in
the United States of America. All companies must be able to compete with companies based in China. What this mean is that all goods made in the
United States of America are given high priority over Chinese made goods.
Questions
В· What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the
impact that has on the U.S. businesses and consumers involved. When there is a surplus of imports brought into the U.S. it means that the price of
the product(s) will drop. U.S. companies that are competing with the Chinese made products will suffer from price drops of the goods. With
consumers it will benefits the consumer with the lower price on goods. Large screen LCD/HDTV is a good example. Since the recession there has
been a surplus of large screen HDTV. Not many people can afford or buy them since the prices were high. Now large screen LCD/HDTV is much
cheaper than what it was 4 years ago. В· What are the effects of international trade to GDP, domestic markets and university students? The effects of
international trade on GDP are that GDP and employment goes hand in hand. What this mean is that as employment move out of the United States it
create smaller GDP in return. As international trade with imports of goods also

Question 1 a. The dollar is presently weak and is expected to strengthen over time. These expectations affect the tendency of U.S investors to invest
in foreign securities because the value of U.S dollar decrease will lead to the U.S company get less profit and earn less money. Consequently, U.S
companies will pay fewer dividends for investors who invest in these companies. So, investors will tend to invest in foreign securities where they can
get higher dividend. On the other hand, a weak currency can reduce unemployment but maybe it can lead to high inflation, and simultaneously it may
reduce U.S imports and boost U.S exports or buy more goods than it sells abroad (imports exceed exports). Another thing, in the long run, trade deficits
... Show more content on Helpwriting.net ...
And when it is expected to strengthen against, owns or earnings from the foreign securities can periodically be converted back to more dollars
when they were sold. Question 2: In my opinion, a financial manager of Chapman Co. recommends that it wait until the world stock market
recover before it issue stock. He is correct because this is the first time Chapman Co. engage in an initial public offering (IPO). And IPO is very
important so it is the first challenge for company to issue stock. Consequently, when Chapman Co. waits until the world stock market recover
before it issues stock, this will make Chapman Co.'s stock price increase according to the world stock marker recover, then, Chapman Co. can gain
more profit. Because at the beginning, Chapman Co. issued stock with initial price, and the world market recover will make the Chapman Co.'s
stock price increases more than initial price. Consequently, Chapman Co. gets more profit from IPO and can finance its international expansion.
On the other hand, if Chapman Co. follows the other managers to issue stock now even if the world stock market's price would low, the Chapman's
stock price would be low and tend to more decrease according to weak world stock market. So the low stock price at this time will not encourage
people to buy. Moreover, the world stock market is still not recovered, the other companies' stock may also get problems and lead to decrease their
stock price. And investors will

Notes on International Finance
Section A 2. The relative purchasing power parity condition holds that prices in different countries will different by roughly the same amount over
time. This condition is based on the idea that differences in prices from one country to another reflect differences in underlying cost factors, access to
inputs, taxation and other country–specific variables. Specially excluded in this condition is the exchange rate. Over time, the condition assumes, the
movements of interest rates and exchange rates will mean that there is parity in the prices of goods between the two countries. The condition assumes
therefore that any differences in prices can be explained in terms of non–currency country–specific factors. In the short run, there is no such
assumption. This is because there is sometimes a time lag with respect to price changes. While currency exchanges rates and interest rates can
change quickly, price changes can be slower for a number of reasons. Moreover, some of the inputs costs might change but again there is a time lag
for these changes. The condition of relative purchasing power parity, therefore, is said to exist mainly in the long run. 6. In this situation, you borrow
the $1,000,000, convert it into 1,500,000 Swiss francs. This money would be invested in Switzerland, earning 22,500 francs. After three months, the
total of 1,522,500 francs will be converted back to dollars at 1.48, so $1,028,716. The total USD repayment will be $1,025,000. The proceeds will be the

Slides For International Finance
Introductory Concepts Short–Run Model: DD and AA Liquidity Trap Macro Policy and CA Slides for International Finance Aggregate Demand and
the SR (KOM Chapter 17) Alan G. Isaac American University 2012–10–22 Alan G. Isaac Slides for International Finance Introductory Concepts
Short–Run Model: DD and AA Liquidity Trap Macro Policy and CA AA Curve Aggregate Demand PREVIEW AA Curve review SR model of asset
market equilibrium AA: Y E (to maintain asset mkt eq) DD Curve SR model of output market equilibrium DD: E Y (to maintain asset mkt eq) SR
Model AA + DD: simultaneous output market and asset market equilibrium temporary v permanent changes in monetary and п¬Ѓscal policies liquidity
trap (zero... Show more content on Helpwriting.net ...
Isaac Y Slides for International Finance Introductory Concepts Short–Run Model: DD and AA Liquidity Trap Macro Policy and CA AA Curve
Aggregate Demand ^M AA Shifts Up E E E2 E1 E2 E1 Y1 AA' AA Y 0 Rв€
— + R2 R1 e E1 в€’E E returns Q1 M1 /P Q2 M2 /P L(R , Y1 ) Alan G.
Isaac Q Slides for International Finance Introductory Concepts Short–Run Model: DD and AA Liquidity Trap Macro Policy and CA AA Curve
Aggregate Demand ^Ee AA Shifts Up E E E2 E1 E2 E1 Y1 AA' AA Y Rв€
— + Rв€
— + 0 e E1 в€’E E R1 Q1 L(R , Y1 ) Alan G. Isaac e E2 в€’E E Q
Slides for International Finance returns Introductory Concepts Short–Run Model: DD and AA Liquidity Trap Macro Policy and CA AA Curve
Aggregate Demand Determinants of Aggregate Demand Aggregate demand the aggregate amount of goods and services that individuals and
institutions are willing and able to buy C: consumption expenditure I: investment expenditure G: government expenditure (purchases of п¬Ѓnal goods
and services) CA: net expenditure by foreigners (the current account) Alan G. Isaac Slides for International Finance Introductory Concepts Short–Run
Model: DD and AA Liquidity Trap Macro Policy and CA AA Curve Aggregate Demand Determinants of Consumption Demand ^ ^ disposable income
(Yd = Y – T) (Y–T) C

Blades Plc Parity Relations in International Finance
International Finance FIE433
Case Study 2 – Parity Relations in International Finance
Instructions
Students should allocate themselves into Consultancy Teams of around four people (final confirmation of the number in each team to be given after
student enrolment). Choose a unique business name for your team. All teams should be prepared to present their results/conclusions to the rest of the
class. A printout of the presentation slides should be uploaded on Its Learning and made available to me at the start by ALL teams. I will then choose
randomly the teams to give their presentations of no longer than 20 minutes on the assigned tasks during the tutorials. Emphasis should be put on the
presentation of the key points and the overall ... Show more content on Helpwriting.net ...
Besides the bid and ask quotes for the Thai baht provided in the previous question, Minzu Bank has provided the following quotations for the pound and
the Japanese yen: Quoted Bid PriceQuoted Ask Price
Value of a Japanese yen in British poundsВЈ0.0057ВЈ0.0058
Value of a Thai baht in Japanese yenВҐ2.69ВҐ2.70
Determine whether the cross exchange rate between the Thai baht and Japanese yen is appropriate. If it is not appropriate, determine the profit you
could generate for Blades by withdrawing ВЈ100,000 from Blades' current account and engaging in triangular arbitrage before the rates are adjusted.
Exchange quotation are not appropriate. There is a possibility for arbitrage, because it is possible to buy Thai bath for 0,0151 ВЈ in Minzu ban and
sell it by 2,69*0,0057=0,0153 what gives 0,0002ВЈ profit per unit. Potential investor convert the currency ВЈ into :Thai bath in Minzu Bank getting
1000 000/0,0151= 6 622 516,6 Thai bath. Then he/she can convert the money into Yen 6 622 516,6*2,69= 17 814 569,5ВҐ and at the end convert it
into British pound again 17 814 569,5* 0,0057= 101 543,05 ВЈ
The profit from arbitrage – 1543,05 ВЈ
3.Ben Holt has obtained several forward contract quotations for the Thai baht to determine whether covered interest arbitrage may be possible. He
was quoted a forward rate of ВЈ0.015 per Thai baht for a 90–day forward contract. The current spot rate is ВЈ0.0151. Ninety–day interest rates
available to Blades in the United

ECON 4131, International Finance, Spring 2002, Exam 3...
Final Exam Questions –– Economics 4131, Spring 2006
1. Explain how the gold standard operated in the classical period (1870–1914). What were the advantages and disadvantages? Some say the gold
standard sacrificed internal balance to external balance. How? What were the "rules of the game" and what would happen when they were violated?
What would happen when the demand for monetary gold rose faster than the supply, and why was this a problem?
2. Explain the functioning of the Bretton Woods currency arrangement. Why was it designed as it was? What strains appeared over time, and what
factors led to its collapse?
What was "Triffin's dilemma"?
3. Use the national income accounting identity to explain the phenomenon of "twin ... Show more content on Helpwriting.net ...
What is "sterilization," and how might it be employed (and why)?
5. "When capital is mobile, a country may choose to peg its exchange rate, or it may choose to peg its money supply, but it cannot do both
simultaneously." Explain.
6. Explain the full derivation of the AA–DD model from Krugrman and Obstfeld, Chapter
16. Explain how and why the economy returns to equilibrium from any point away from the intersection of the two curves. Explain what it means to
be above or below AA or
DD, respectively.
7. Use the AA–DD model to illustrate how the economy adjusts to an increase in government spending when a) exchange rates are flexible; b) exchange
rates are fixed.
Discuss.
8. Use the AA–DD model to illustrate how the economy adjusts to an increase in the domestic money supply (expansionary monetary policy) when: a)
exchange rates are flexible; b) exchange rates are fixed. Discuss.
9. Use the AA–DD model to explain what will happen to an economy if investors (and/or speculators) lose faith in the fixed parity of the exchange rate
(i.e. if they anticipate a future exchange rate that suddenly becomes higher). Discuss the full ramifications for the country whose credibility is doubted
and challenged in this respect.
10. Explain the 3 perspectives on the U.S. Current account deficit which Mann describes.
In her view, how likely is the U.S. to face a balance of payments/devaluation crisis as a

International Finance And Globalisation ( Mn7574 )
Assignment in the elective module: International Finance and Globalisation (MN7574)
Conducted by: ...............
Word Count: ....
Describe the three key institutional bodies established in the Bretton Woods agreement. What was their purpose, and how did they operate? Give an
account of the collapse of the agreement and discuss the consequences of this collapse for international finance.
This coursework is submitted as part of the requirements for the award of the MSc in Finance
University of Leicester – School of Management
Leicester
July 2014
Table of Contents
Introduction3
Section 2: Bretton Woods Institutions: purpose of establishment and cooperation4
Section 3: Bretton Woods: The chronology of events6... Show more content on Helpwriting.net ...
Opponents of the EU argue that since the formation of the Euro area we have observed an increasing divergence between the northern and southern
European countries; with the former enjoying the majority of the benefits of the common currency and the latter facing significant issues with their
macroeconomics and struggling to keep up with their northern counterparts.
The formation of the EEA, however, was not the first attempt by societies to converge their interests under a common economic policy. Its predecessor,
the Bretton Woods systemthat was formatted in 1944, endeavoured to set up a set of rules that would define the monetary relationships between a
number of countries. Its primary feature was the commitment by the member nations to maintain a relatively fixed exchange rate against the dollar,
which was tied to gold at a fixed rate.
Alongside with the set up of the system, the members agreed to establish two institutional bodies that would oversee the members' activities, provide
assistance when needed and maintain the cooperation between the members. Those were the International Monetary Fund (IMF) and the World Bank of

Trade and Development (World Bank). Subsequently, the members aimed to establish theInternational Trade Organization (ITO) that was replaced by
the General Agreement on Tariffs and Trade (GATT). All three

1.The modes of international trade that car markers use are export and Joint venture.
Export is the most common mode used by car markers. This mode is been carefully approached by users. Using this exporting approach it causes low
risk as automobile companies, they do not put any of their capital in jeopardy. This help to protect against any losses or prevent the loss to be
devastating. If a company is undergoing a decrease in its exporting, it can typically diminish the exporting or end the exporting business at a minimal
cost.
The second mode is joint ventures. Joint venture is a step that is mutually possessed and worked by two or more firms. Numerous firms enter the
foreign market by taking part in a joint venture with firms that ... Show more content on Helpwriting.net ...
The third strategy is option. An option contract allows the user to sell or buy currency and it helps to protect its user who uses it. Inside an option
contract it is been divided into 2 part, known as the put and call options. The user can buy or sell the currency at a certain price. The price is also
known as the strike price or exercise price. Every option has an expiry date for it.
The two appropriate strategies for the German car makers will be forward contract and option contract.
A forward contract helps save the currency risk. For example Volkswagen needed 5 million SGD to buy a product. But the company only holds
EUR therefore they need to exchange to SGD in order to buy it. However the spot rate could be low and wouldn't meet that 5 million SGD even if
they trade their EUR. This is when forward contract come in and allow to lock in the exchange rate so that they can meet the demand of 5 million
SGD which they do not have to wait for the exchange rate to meet their demand wanted. This strategy helps to save a lot of time for the company. After
the exchange rate was lock in they can then negotiate with the bank to get the money.
The next strategy is option. For example if the Volkswagen receive revenue in term of USD. The revenue they earn will be converted to EUR from
USD. However during the currency risk, EUR may strengthen. If USD is been converted to

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