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    International Finance

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    International Finance: expected effective financing rate

    A U.S. firm plans to borrow Swiss francs today for a one year period. The Swiss interest rate is 9%. It uses today's spot rate as a forecast for the franc's spot rate in one year. The U.S. one year interest rate is 10%. The expected effective financing rate on Swiss francs is: A) equal to the U.S. interest rate. B) less

    possible causes and solutions of those long waiting lines

    If a service-oriented firm has customers waiting in a line for services, the firm has a potential problem. If a bank has long lines of customers in its lobby waiting to transact business with a teller: a) what are the possible causes of those long waiting lines? b) what are the possible solutions to those long waiting li

    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

    Stock Market vs Institutional Investing

    A large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled "Investing is for the little guy". The article now appears on your company's website. It has, interestingly enough, generated e-mailed responses from potential clients and your firm is asking you to a

    Currency Options: Underlying Volatility

    Suppose that he spot price of the Canadian dollar is US $0.75 and that the Canadian dollar/US dollar exchange rate has a volatility of 4% per annum. The risk-free rates of interest in Canada and the United States are 9% and 7% per annum, respectively. Using the Black-Shole formula to calculate the value of a European call op

    International Financing

    What are some sources of short-term, medium-term, and long-term international financing? What are the costs associated with each of these sources?

    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 derivatives and hedge in the foreign exchange market

    Use currency derivatives to speculate or hedge in the foreign exchange market to solve the following problems: Problem 1: An investor wishes to buy euros spot (at $0.9080) and sell euros forward for 180 days (at $0.9146). a. What is the swap rate on euros? b. What is the forward premium or discount on 180-day euros? Pro

    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 Business - Currency questions

    Currencies fluctuate in value in terms of each other and some are hard and convertible while others are not. Please reference your local newspaper in the financial section, or the Wall St. Journal or other paper, and identify two currencies you would call 'hard' and compare them with each other. In other words, show two currenc

    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

    International Portfolio

    International Portfolio Diversification Explain three benefits of interantional portfolio diversification and provide three examples of global funds which have been able to use this concept to successfully invest.

    Vice President of Finance for Daniel's Resources

    You are the Vice President of Finance for Daniel's Resources, headquartered in Phoenix, Arizona. In January 2002, your firm's Canadian subsidiary obtained a 6-month loan of $100,000 Canadian dollars from a bank in Tucson to finance the acquisition of a titanium mine in Quebec province. The loan will be repaid in Canadian dollars

    Exchange Rate Calculations and Reasons for Currency Fluctuations

    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

    International Financial Markets

    P.2 Acme has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency. Based only on the know