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International Finance

Corporate Governance

What does corporate governance mean? What is the role of the Board of Directors in a corporation? Based on research, give a real-world example of issues facing a board of directors. Supplemented with extra information on corporate governance and the role of the board of directors.

Forecasting and sensitivity analysis

1. What are the ramifications if one or more of your projections/forecasts do not hold true? What will you do if, during implementation, you find that you overstated or understated your projections? 2. How does sensitivity analysis relate to contingency planning? What are a couple risk mitigation strategies that you could

Working Capital and Financial Environment

Using Coca-Cola, and Pepsi-Cola: a. Describe and quantify the elements of working capital for the most recent fiscal year for Coca-Cola and Pepsi-Cola. b. Explain the functions of intermediaries and financial regulatory bodies with both companies. c. Determine the importance of control programs and effective internal contro

Forms of Export Financing & Major Currencies

1. What are the primary forms of export financing? What steps are involved in each form of international financing? What are the advantages and disadvantages of each form? 3. Select two major currencies of the past year. What are the similarities and differences between your selected currencies? What have been the drive

Finance / Introduction to Corporate Finance

3. Explain how a firm's management can limit risk exposure through using a forward contract. What types of forward contracts are available? 5. How do managers use futures contracts to limit risk exposure?

The Treaty of Versailles

Reparations payments by Germany required under the Treaty of Versailles posed a problem. How were tax payments by German citizens to their government in German marks to be converted to dollar payments to United States lenders? Explain how these transfers might have been successfully carried out. Why was Germany unable to make th

International Finance Questions (Multiple Choice)

1- Even if production costs are higher in a foreign country, a U.S. firm may establish a manufacturing plant in the foreign country now if: A) the host government of that country eliminates all quotas. B) the host government of that country reduces all quotas. C) the host government of that country increases all quotas.

Traditional and derivative instruments

What are the differences between traditional and derivative instruments? Why do companies use derivative instruments? Are derivatives a good investment? Why or why not?

Foreign Exchange - Euros

In 2003, I deposited $10,000 into a Swiss bank account I have had since I worked in Geneva in the 1970s. ($10,000 is the limit that Americans can wire in one transaction to an overseas location) At the time (2003) the dollar was strong....the ratio to the Euro was about .91. What is it today? What is the $10,000 w

Exporting Products to Thailand

Marketing managers feel it is first important to get an idea of the climate in the country towards foreign trade and investment. Analyze (Thailand) its trade policies as to how they promote and/or restrict international trade. Determine whether these policies include any of the following: Subsidies, export financing, foreig

U.S. Goverment Financing/Balance of Payments

Your hometown newspaper needs someone to write an informative article on large scale economic issues. The reporter who spoke with you before thinks of you, welcomes you home, and requests another article. The attached document named BOB is a summary of disaggregated data drawn from information provided on the 2000 U.S. balance

Functional currency, financial reporting practices

24. What is a company's functional currency? A) the currency of the primary economic environment in which it operates B) the currency of the country where it has its headquarters C) the currency in which it prepares its financial statements D) the reporting currency of its parent for a subsidiary E) the currency it cho

Define the functions and roles played by financial markets and institutions

Define the functions and roles played by financial markets and institutions, particularly as they relate to the flow of funds from lenders to borrowers within the global financial system You want to explain to a group of new hire bank employees the role the Great National Bank has as an institution in the financial market an

International finance

One-year interest rates are currently 3.30% in the United States and 2.60% in "Euroland." The current spot rate between the euro and dollar is $1.3225/?. What is the expected spot rate in one year if the international Fisher effect holds? a. $1.3315/? Andrea Cujoli is a currency speculator who enjoys "betting" on changes

Estimating demand by market consumer clinics

1. What are the major advantages and disadvantages of estimating demand by market consumer clinics? 2. (a) On what does the domestic-currency price of a nation's imports depend? (b) What would happen to the domestic-currency price of a nation's imports if the foreign-currency price of the nation's currency increases and the

Fill in the blank questions in International Finance

Please fill in the blank: (hint: you don't have to use just one word for each blank) 3. In order to protect newly-formed industry groups, some nations will charge duties on foreign goods from those sectors in order to allow them to get strong enough to compete internationally. This is called: _____________________

Currency fluctuation effect on Mexican consumers

Use the example of Benny Baby below. In international terms, what were the effects of currency fluctuations on the Mexican consumer during that time period? What do you think were the effects of that devaluation on Benjamin Cabrera? What would have happened had Benjamin been the exporter and I had been the importer? ****Here

International Finance

Please give some thought to how the company can make money or lose money by simply engaging in international transactions. The net sales figures from the European region are as followed: Year 1 sales = 125 million euros Year 2 sales = 150 million euros Year 3 sales = 175 million euros Year 4 sales = 200 million euros

Currency Conversion Rates and Interpretations

I've placed a chart of the value of Reais (Brazil) compared to the US dollar. Can you please help me understand the value here? Questions: How did the currency change compare to the USD? Stronger or weaker? How does this fluctuation affect an importer? An exporter? An investor? Currency Table Brazil Reais Units per U

Finance Multiple Choice

Total corporate risk includes systemic but not systemic risk. a. True b. False Hedging is the use of financial derivatives contract to protect against unexpected rate changes movements. a True b false International Company, an American company, wants to borrow money for its expansion in Australia. Recommend an o

Exchange rate calculations

On May 16, the exchange rate of a German mark was $.58. On May 20, the exchange rate is $.57. Which of the following statements is true? a. The dollar has risen against the mark b. The dollar has fallen against the mark c. The dollar is weaker than the mark d. The dollar and the mark are equally strong What causes one

Benefits of the International Capital Markets

1. What are some benefits of the international capital markets? Does borrowing a portfolio of currencies offer any possible advantages over the borrowing of a single foreign currency? 2. Why would an organization consider investing short term funds overseas? What techniques are available to multinational firms to speed up the