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International Business Strategy

International business: global companies doing business with China

For many global companies, China represents a very attractive market in terms of size and growth rate. Yet, it ranks lower in terms of economic freedom and higher in political risk than other country markets because it has a communist government. Despite these risks, Volkswagen, Isuzu, and Boeing are just a few of the hundreds o

Dollar Quotes for the yen & the Taiwan dollar (NT$)

Suppose Dow Chemical receives quotes of $0.009369-71 for the yen and $0.03675-6 for the Taiwan dollar (NT$). a. How many U.S. dollars will Dow Chemical receive from the sale of -50 million? b. What is the U.S. dollar cost to Dow Chemical of buying -1 billion? c. How many NT$ will Dow Chemical receive for U.S.$500,000?

Large trade surplus and a weak national economy

During 1992, Japan entered a recession. However, at the same time, its current-account surplus hit a record. Is there a contradiction between Japan's large trade surplus and a weak national economy? Explain.

Dramatic shift in the age distribution of the U.S. workforce

In 1965, about 34% of all adult workers were under the age of 34, compared with almost 47% by 1980. Meanwhile, the share of the workforce between 35 years and 59 years shrank from about 60% to 49%. What impact might this dramatic shift in the age distribution of the U.S. workforce have had on the U.S. current-account balance ove

Mexico and Argentina during the 1990s

During the 1990s, Mexico and Argentina went from economic pariahs with huge foreign debts to countries posting strong economic growth and welcoming foreign investment. What would you expect these changes to do to their current-account balances?

Spain Joined the EMS and Pegged the Peseta to the DM

Historically, Spain has had high inflation and has seen its peseta continuously depreciate. In 1989, Spain joined the EMS and pegged the peseta to the DM. According to a Spanish banker, EMS membership means that "the government has less capability to manage the currency but, on the other hand, the people are more trusting of the

Independent monetary and fiscal policies

Suppose nations attempt to pursue independent monetary and fiscal policies. How will exchange rates behave? Will coordination of economic policies make exchange rates more or less stable? Explain.

Calculate dollar appreciation against the rupiah & the franc

1. In the second half of 1997, the Indonesian rupiah devalued by 84% against the U.S. dollar. By how much has the dollar appreciated against the rupiah? 2. On February 1, the French franc is worth $0.1984. By May 1, it has moved to $0.2057. By how much has the franc appreciated or depreciated against the dollar over this 3-mo

Impact on real value of the Colombian peso

In 1994, an influx of drug money to Colombia coincided with a sharp increase in its export earnings from coffee and oil. What was the likely impact of these factors on the real value of the Colombian peso and the competitiveness of Colombia's legal exports? Explain.

Inflation, devaluation and competitiveness

Countries with high inflation need to keep devaluing their currencies to maintain competitiveness. But countries that try to maintain their competitiveness by devaluing their currencies only end up with even higher inflation. Discuss.

Politics and the French Franc

In the 1995 election for the French presidency, the Socialist candidate, Lionel Jospin, vowed to halt all privatizations, raise taxes on business, spend heavily on job creation, and cut the work week without a matching pay cut. At the time Mr. Jospin made this vow, he was running neck-and-neck with the conservative Prime Ministe

General Motors - IFAS, EFAS, SFAS

Pleas help so that I can complete the following: Consider the General Motors (GM) Corporation. IFAS, EFAS, and SFAS tables are to be presented in Excel format.

International Finance Rivalries

Please help with the following problems involving international business. Saint-Gobain, a French firm, and Pilkington PLC, a British firm, are arch rivals in the European flat-glass business. After Britain's exit from the ERM in September 1992, the pound fell by 15% against the franc. a. What was the likely impact on Sain

Eastern philosophies

Write a 350-700 word response, in which you choose two or three Eastern philosophies and describe how they compare. Take sides, determine which philosophies are most persuasive, and explain why.

Question about International Fisher Effect (IFE)

24. Beth Miller does not believe that the international Fisher effect (IFE) holds. Current one- year interest rates in Europe are 5 percent, while one-year interest rates in the U.S. are 3 percent. Beth converts $100,000 to euros and invests them in Germany. One year later, she converts the euros back to do

International Fisher Effect in Brazil

Assume that the inflation rate in Brazil is expected to increase substantially. How will this affect Brazil's nominal interest rates and the value of its currency (called the real)? If the IFE holds, how will the nominal return to U.S. investors who invest in Brazil be affected by the higher inflation in Brazil? Explain.

International Fisher Effect (IFE)

Assume U.S. interest rates are generally above foreign interest rates. What does this suggest about the future strength or weakness of the dollar based on the IFE? Should U.S. investors invest in foreign securities if they believe in the IFE? Should foreign investors invest in U.S. securities if they believe in the IFE?

International Fisher Effect (IFE)

Explain the international Fisher effect (IFE). What is the rationale for the existence of the IFE? What are the implications of the IFE for firms with excess cash that consistently invest in foreign Treasury bills? Explain why the IFE may not hold.

Riordan Expansion to Japan

Assume that Riordan is now considering an expansion to Japan and that Robert Lord's pay is $140,000 per year in the United States. Taking into consideration that an expatriate's pay would include housing, healthcare, transportation, allowances and premiums, and so forth, how would Robert Lord's pay as an expatriate differ from t

Financial Management in International Business

Need some pointers to help in developing a plan of action for the following scenario: You are the CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you th

Investigate the economy of the Philippines and its neighbors.

Please help me with a PowerPoint for the following: Your organization (you may select any organization you wish, real or fictional) is considering investing in the Philippines, and you have been asked to give a presentation on this opportunity. In the presentation, you need to address the following: Investigate the economy

Is the International Court of Justice the first world court?

Please help me with the questions listed at the end. ------------------------------ The International Court of Justice (The World Court), located at the Peace Palace in The Hague (Netherlands), was established in conjunction with the United Nations ( in 1946. The World Court has two primary functions: (1

Global Business And Risk Analysis

A) Why is it important for a global business to conduct a risk analysis? B) In a country risk analysis, which factors carry more weight than others? C) Does this hold true for all countries?

Shell in Nigeria

Given the high political risk in Nigeria, why doesn't Shell go somewhere? Note: The source should be cited.

Studying International Business

"The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms." Evaluate this statement.