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Exchange Rates


define each of the six indicators, and describe its current status. In addition, present a separate graph for each indicator illustrating the historic trend for each. Introduction - 1. Real GDP - 2. Unemployment Rate - 3. Inflation Rate- 4. Interest Rate - 5. Foreign Exchange Rate - 350 words (this s


Help is needed with following: A) Sal's International is a popular haircutting and styling salon near the campus of the University of New Orleans. Four barbers work full-time and spend an average of 15 minutes per customer. Customers arrive throughout the day at an average rate of 12 each hour. All arriving customers are assi

Mergers and Acquisitions

Mergers and Acquisitions 1. Can-Dee-Con is an established national building company. The firm has concentrated its activities in building residual units. 2. Alu City is a manufacturer of aluminum products for the building industry and has experienced a high growth rate due to an increased demand. The company shares are cur

Equilibrium Output and GDP

Assessment 6 1) Given the following data: Year 1 Year 5 Consumption 600 960 Investment 134 340 Property Income earned overseas

Graph to Determine Equilibrium Levels

1) Given the following data: Year 1 Year 5 Consumption 600 960 Investment 134 340 Property Income earned overseas 75 120 Property income paid overseas 95 95 Subsidies 55 110 Indirect Taxes 85 150 Exports 80 150 Imports

Many factors determine the supply and demand for labor.

Many factors determine the supply and demand for labor. Identify and explain two factors that would increase or decrease the demand for labor. Identify and explain two factors that would increase or decrease the supply of labor. Use the readings and/or the internet for examples.

IS-LM setup notes

Assignment: 1) Assume last year's real GDP was $7,000 billion, this year's nominal GDP is $8,820 billion, and the GDP-deflator for this year is 120. What was the growth rate of real GDP? 2) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following

Exchange Rates-Arbitrage profits

Following are from Hubris Bank and Modesty Bank: Hubris bank : 1786 Lira/ US$ Modesty Bank: 1783 Lira/ US$ Answer the questions based on the above figures. a) if we assume no transaction costs, there is evidently an opportunity for arbitrage here. if an arbitrageur started with US $10,000, exactly how would the arbitra

Cost and Savings of Doing Business in China

Scenario The firm manufactures a global positioning system (GPS) that sells for $1,000 with cost of goods sold (hardware and software) of 48% of sales. Compared to the United States, China offers a 6% cost reduction in electronics manufacturing hardware and a 50% reduction in software programming. Please answer the follow

Calculate present value

You are a U.S. investor who is trying to calculate the present value of a ?5 million cash inflow that will occur one year in the future. The spot exchange rate is S = $1.25/? and the forward rate is F1 = $1.215/?. You estimate that the appropriate dollar discount rate for this cash flow is 4% and the appropriate euro discount

Assume the price of a shirt in Florida is USD20 and in Ottawa is CAD25.

Here is the assignment - Assistance with one or both parts of the assignment is helpful... Exercise: Analyze the following and discussion your answers: (a) Assume the price of a shirt in Florida is USD20 and in Ottawa is CAD25. The exchange rate between USD and CAD is .80. Calculate the effects of an appreciation and a depre

Interest rates scenario

Help with the attached scenrio questions What decisions of Big Drive's shareholders, suppliers, and customers are affected by changes in interest rates, and how? When interest rates fall, are suppliers affected? How? How do changes in interest rates affect Big Drive's costs? Explain how changes in monetary vari

Working Capital

What are some of the metrics you would recommend to monitor effective working capital management for inventory? How would you implement them?

Exchange Rate Calculations and Exchange Rate Risk

Consider the following illustrative exchange rates: U.S. Dollars Required to Buy One Unit of Foreign Currency Japanese yen 0.009 Australian dollar 0.650 Assume Citrus Products can produce a liter of orange juice and ship it to Japan for $1.75. If the firm wants a 50 percent markup on the product, what should th

A U.S Corporation as a subsidiary in Netherlands.

A U.S Corporation as a subsidiary in Netherlands. It is deciding whether to invest 2 millions from the parent's funds in a 3 year project in the Netherlands. the after tax cash flows to the subsidiary are estimated to be as follows (in euros): Year 1 500.000 year 2 800,000 Year 3 900,000 The entire cash flows

Exchange Rates Research

I need help completing the following task. I've attached the information needed for this particular assignment. You are the chief executive officer of a multinational's subsidiary in a developing host country. The subsidiary has been in business for about eight years, making electric motors for the host country's domestic ma

Annual Return, Variance and Standard Deviation

1) From the following information, compute the average annual return, the variance, standard deviation,and coefficient of variation for each asset. Asset Annual Returns A 5%, 10%, 15%, 4% B -6%, 20%, 2%, -5%, 10% C 12%,15%, 17%

Time value comparisions of single amounts

In exchange for a $20,000 payment today, a well known company will allow you to choose one of the alternatives shown in the following table. Your opportunity cost is 11%. Alternative Single Amount A $28,500 at end of 3 years B $54,000 at end of 9 years C

Value of a Call Option using Black Scholes Equation

Assume that the spot price of the British pound is $1.55, the annualized 30-day sterling interest rate is 10%, the annualized 30-day U.S. interest rate is 8.5%, and the annualized standard deviation of the dollar:pound exchange rate is 17%. Calculate the value of a 30-day PHLX call option on the pound at a strike price of $1.57

Identify and describe the effect of changing the savings rate on consumption.

Dear OTA: Please try to do the following for me. There is an attachment to this that has the info needed to answer these questions. I sincerely appreciate your help as I cannot calculate this information out. :-( ? Identify and describe the effect of changing the savings rate on consumption. ? Calculate the marginal prop

Exchange Rates & Balance

A) Following the decrease in the demand for the Baht, has the Baht appreciated or depreciated in relation to the US dollar? B) Suppose that the Bank of Thailand desires to push the equilibrium exchange rate back to a value of $.27 per Baht. How could the Bank of Thailand accomplish this objective by inducing the demand for Ba

Floating exchange rate: effect of US inflation, major discoveries of the highest quality diamonds ever found occur in Russia & Central Asia, causing a significant decline in purchases of South African diamonds on Rand; decrease in the demand for the baht

Explain how the following events would effect the market for South Africa's currency, the rand, assuming a floating exchange rate. a) a rise in the US inflation causes many US residents to seek to buy gold, which is a major South African export, as hedge is against inflation. The rand appreciates The rand does not

A quota is

I am stuck on the following multiple choice questions. Could someone please help? Thanks so much:) 11. A quota is a. a tariff on exports b. a quantitative limit on the amount of a good that may be imported c. the same as a non-prohibitive tariff d. the amount of exports a country needs to finance its imports e. a per-un

IS and LM curves

Given the following parameters for an open economy open economy where C=10+.8(y-T); I=10 G=10 T=10 and imports and exports are given by IM=.3Y and X=.3Y* respectively where Y is foreign output. Provide an equation that resolves to the lowest level. Given Y*. What is the mulipier effect of this open economy? Explain the be

Suppose the dollar-pound rate equals $0.5 per pound.

Suppose the dollar-pound rate equals $0.5 per pound. According the purchasing power parity theory, what will happen to the dollar's exchange rate under each of the following scenarios ? a) The U.S. price level increases by 10% and price level in Britain stays constant b) The U.S. price level increases by 10%, while price le