SlideShare a Scribd company logo
Financing International Trade" Please respond to the following:
Compare two (2) methods that a company can use in order to
finance international trade. Examine the advantages and
disadvantages of financing with a portfolio of currencies.
Provide two (2) examples of how companies or MNCs finance
international transactions by using their own
bank
” or by keeping currencies on hand (marketable securities).
Analyze Interest Rate Parity (IRP) and two (2) methods for
forecasting exchange rates. Determine the primary manner in
which they all affect a company’s short-term financing decision.
Support your response with one (1) example of the manner in
which IRP and forecasting exchange rates methods affect a
company’s short-term financing decision.

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Financing International Trade Please respond to the followingCom.docx

  • 1. Financing International Trade" Please respond to the following: Compare two (2) methods that a company can use in order to finance international trade. Examine the advantages and disadvantages of financing with a portfolio of currencies. Provide two (2) examples of how companies or MNCs finance international transactions by using their own bank ” or by keeping currencies on hand (marketable securities). Analyze Interest Rate Parity (IRP) and two (2) methods for forecasting exchange rates. Determine the primary manner in which they all affect a company’s short-term financing decision. Support your response with one (1) example of the manner in which IRP and forecasting exchange rates methods affect a company’s short-term financing decision.