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International Finance

Calculate actual payment given situation

Steps to solve the following problem... You are a U.S. importer from France. You committed to paying ?100,000 to your French supplier on May 31. You decided to hedge against this foreign currency liability by entering long one euro futures contract. Unfortunately, the closest that you can come to May 31 is the JUN contract with

What is included in other comprehensive income?

What is included in other comprehensive income? Why are items included in other comprehensive income, but not included in net income? Should these items be included in net income, or not included at all? Explain your answer.

Regular and Irregular items on an Income Statement

What are the differences between regular and irregular items on an income statement? What are the requirements for items to qualify as irregular? What are some examples of these irregular items? What is the affect of irregular items on an investor's analysis of a company?

Major Types of Foreign Exchange Risks

What are the major types of foreign exchange risks? How are these risks hedged or mitigated... and what benefits do firms gain from hedging activities? Can you help me get started on this assignment?

International Accounting Standard Problems

Please help answer the following questions. Include references. What are at least three International Accounting Standards (IASs)? Are these standards the same as U.S. standards? Why or why not? Is it necessary to have global standards? Why or why not?

banking deregulation in the economy

Request assistance with graduate level research: MS word document, with APA citing in text and references, addressing the following issues: Would banking deregulation be good for consumers as well as the economy in general? Other issues that should be addressed include: What is the purpose of the main banking regul

Capital Structure Discussion

Guidelines for the answer ( 5.1 to 5.11 need to be answered taking into consideration the guidelines given below 1. A Contents page showing clearly the page number and /contents of each page of your project. 2. An executive summary showing the most important findings and research which was covered in the discussion. 3. A

Floating Exchange Rate Regime

Suppose that the U.S. Congress imposes an increase in taxes. Under a floating exchange rate regime, carefully illustrate and explain the process that will generate a new goods market, money market and balance of payments equilibrium. What are the effects of such a policy on domestic income and employment? Please detail the answe

Spot, Money, and Bond Markets

Recently, Wal-Mart established two retail outlets in the city of Shanzen, China, which has a population of 3.7 million. These outlets are massive and contain products purchased locally as well as imports. As Wal-Mart generates earnings beyond what it needs in Shanzen, it may remit those earnings back to the United States. Wal-Ma

Compute the Value of a Currency Swap between Two Companies

I am a national banker, who has approached two of my multi-national clients to offer to construct a currency swap that will enable both parties to better manage interest rate and Forex risk exposures. Company A has borrowed $20 million and Company B has borrowed GBP 11 million. Each wishes to swap in the others currency. The

Clarke Corp subsidiary: Report foreign currency on consolidated balance sheet

A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1, 2009, for 100,000 pesos each. It pays for both items on June 1, 2009, and they are still on hand at year-end. Inventory is carried at cost under the lower-of-cost-or-market-rule. Currency exchange rates for 1 peos follow: Jan 1 2009


1.Which of the following is not an advantage of bonds. a. Bonds do not affect owner control b. None of the other answers c. Bonds can increase return on equity d. Bonds require payment of both periodic interest and the par value at maturity 2.Hildebrand Morgan makes trendy clothing and accessories for sophisticated wome

Calculate recognized gain on exchange; journalize entries

Part A Nonmonetary exchange. Layne Co. has a machine that cost $255,000 on March 20, 2007. This old machine had an estimated life of ten years and a salvage value of $15,000. On December 23, 2011, the old machine is exchanged for a new machine with a market value of $162,000. The exchange lacked commercial substance. Layne a

Expansion into Foreign Market

Please help with the following international finance problem. If you were an investor or business manager looking to expand into a foreign market, would you borrow from a domestic bank or consider borrowing from a financial institution in the target country? What conditions would you base your decision on? What might chang

Risk Management Technique

In 400 words explain brainstorming risk management techniques and the rationale behind selecting brainstorming risk management technique. Conduct a risk assessment of the company AT&T to show how risk management contributes to stakeholder wealth maximization.

Nordstrom and JetBlue: strategy in marketplace

The question in this exercise are based on Nordstrom Inc 2004 annual report. 1) What is Nordstrom strategy for success in the marketplace? Doe the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value

Financing and investment tools in international trade ADRs and FRNs

Nealtus' training program includes various "training rotations" where executive trainees spend some time in various departments to receive training that is more specific and gain additional experience with the international market. This week, you have been assigned to Nealtus' trading department to gain additional knowledge ab

A) Estimate the standard deviation of the monthly movements in the Canadian dollar against the U.S. dollar over the last 12 months. b) Estimate the standard deviation of the monthly movements in the Mexican peso against the U.S. dollar over the last 12 months. c) Determine which currency is less volatile.

Zemart is a U.S. firm that plans to establish international business in which it will export to Mexico (these exports will be denomiated in Pesos) and to Canada (these exports will be denominated in Canadian dollars) once a month and will therefore receive payments once a month. It is concerned about exchange rate risk. It wants

Tariffs, Quotas and Trade

Please help answer the following questions. Include references in the solution. What is the difference between a tariff and a quota? What is the impact of a trade surplus? What is the impact of a trade deficit? How does politics affect international trade?

Dell, Inc: Strategy for success, business risks

The questions in this exercise are based on Dell, Inc. To answer the questions, you will need to download Dell's Form 10-K for the fi scal year ended January 28, 2005 by going to Input CIK code 826083 and hit enter. In the gray box on the right-hand side of your computer screen d

Financial Research Report: CostCo

This assignment is an analysis of a U.S. publicly-traded company, with either a subsidiary or division operating outside of North America and its common stock as a prospective investment. Format and actions to complete: Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines

Efficient or optimal portfolio using beta as a selection measure

Once you become even more finance savvy, over time you will be more comfortable randomly choosing stock on your own or by using a scientific approach. Can you as an individual investor choosing your own stock create an optimal portfolio of 99 stock (can be other securities besides stock) by selecting 33 stocks with beta equal to

Finance: Demand, Tariffs, Exchange Rate, Money Supply

5. If the demand for a country's exports falls at the same time that tariffs on imports are raised, will the country's currency tend to appreciate or depreciate in the long run? 10. Mexican peso trading at 10 pesos per dollar. If expected U.S. inflation rate is 2% while expected Mexican inflation rate is 23% over next year, w