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International Finance

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?

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 US

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

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

Dear Student, Thank you for using BM. Below are my answers. First, derivatives are financial instruments which offer returns based on the return of an underlying asset. Derivatives are usually undertaken to manage or hedge the risk exposures of a firm. Second, the Financial Accounting Standards Board or FASB's Statement of Financial Accounting Standards or SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, outlines the basic guidelines for the accounting of these instruments and they are as follows. Derivatives must be reported by companies in the balance sheet as either assets or liabilities and recorded at their fair value, and their classifications determined how the difference in the fair value and their book value at the statement date be reported in the financial statements. 1. Derivative designated as a hedging instrument for the exposure to changes in the fair value of the underlying. The difference between the fair and book values is recognized in the income statement adjusted for the gains or losses from the hedged item. 2. Derivative as a hedging instrument for the exposure to the variability of cash flows of a forecasted transaction. Differences in fair and book values of the derivative instrument are initially included as part of the other comprehensive income under the equity section of the balance sheet and then reclassified into the income statement when the underlying transactions have been executed. 3. Derivatives as a hedging instrument for the exposure to foreign currency exchange rate volatility for a net investment in a foreign operation. The difference between the book and fair values is also reported in other comprehensive income. 4. Derivatives not designated as a hedging instrument. Differences in fair and book values are accounted for in the income statement for the period.

Please help with the following problem. A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier has 150 square yards of wool and 200 hours of labor available. Each coat requires 3 square yards of wool and 10 hours of labor, whereas each pair of slacks requires 5 square yards of

Risks: International Real Estate Industry

Please provide a brief explanation of how the following international risk factors affect the United States REAL ESTATE INDUSTRY: 1. International political risk 2. Foreign exchange rate risk 3. Economic risk

Hospital/healthcare mergers

Hello BrainMass OTAs, I need help with two questions strictly related to healthcare/hospital mergers. 1. Evaluate this assertion: since 1997 there has been a steady decline in hospital mergers. A major reason for this decline has been the lack of anticipated cost savings from the mergers. 2. Also, if a health care merg

Understanding strategic planning in a foreign country

1) Why do global businesses fail even after strategic planning occurs? What tactical adjustments can you make to correct malfunctions (organizational, financial, marketing, ethical, political, legal, etc.) to avoid a total global business failure? 2) What is the relationship between country risk analysis and possible exit str