4-2 Assignment Foreign Exchange

Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Explain how can we mitigate foreign exchange risk in these countries and how exchange rate will be useful. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the…

Introduction to Foreign Exchange Market: Provide an overview of the foreign exchange market and its significance in international business. Your International business is an Oil Company Located in Saudi Arabia  1a. Explain how the foreign exchange market is structured. Discuss key participants, such as banks, corporations, and central banks, and the mechanisms involved in currency exchange. 1b. Identify the currency used in your country. Explain the exchange rate and how it compares to the US dollar.

For every part of this question, assume the reasonable national goals of long term economic growth and business cycle stabilization: a) Discuss a few of the benefits of using the West African franc (WAF). How do these advantages overcome other problems (that occur elsewhere in Africa), where the WAF is not used. b)The WAF currency board is based in Dakar, Senegal. What actions must be taken by the currency board, to guarantee the benefits, discussed in part A? Why is any cheating by the currency board impossible? c) All governments must make tradeoffs. As a result, some people will disagree with their own government. What are some of the identifiable disadvantages of using the WAF? How do these problems occur?

Scenario You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates: On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year. On April 1, the daily spot rate is 3.52 MYR. 1:…

Scenario You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates: On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year. On April 1, the daily spot rate is 3.52 MYR.…

Which of the following is true about the IMF and World Bank?   a. More than 190 countries participate as members of the IMF.     b. They aid in dollarizing the economies of foreign nations.     c. The IMF lends money to all types of countries, including advanced, emerging, and developing economies.      d. The IMF provides loaner currency to countries experiencing hardship. Which of the following payment types offers payment protection to both exporters and importers, as the importer’s bank writes a guarantee of payment?   a. A commercial letter of credit     b. Payment in advance     c. A syndicate     d. A banker’s acceptance The supply chains of global businesses such as Boeing, Ford, United Airlines, and the pharmaceutical companies Merck and Pfizer are known as which type of supply chain?   a. Enterprise     b. Telecommunication     c. Global     d.…

Please help with a discussion on question #2. The base country is Nevis and the countries trading to is Australia, Columbia and Germany. Explain why would it be more profitable to trade in USD rather than XCD and how can the MNC benifit from the trading countries currencies. Use an echange rate table or chart to help strenghten your point You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, is the exportation of a product soldthrough a distributor2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that…

Trade finance can help reduce the risk associated with global trade by offering security just for exporters. True False If false, give the good answer: course: export of services

Explain the concept of risk and risk management processes from a foreign exchange/currency perspective. Discuss hedging and explain why is it used, illustrating with examples

Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Also explain how can we mitigate foreign exchange risk in these countries. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the operating environment of the MNC…

Discuss the various terms of payments for export financing.  a)  letter of credit and types of letter of credit. b) identify the export credit insurance.

In looking at the distribution of countries in terms of the price of 1 gigabyte of mobile data, certain relationships seem to make more economic sense ​than ​others. From the following set, please identify that statement that provides a fundamentally wrong interpretation for the wide variation in the price of 1 gigabyte of MB of data worldwide A) Countries with some to extensive fixed-line telecom infrastructure can offer mobile plans with more data at a cheaper price.   B) Low demand in a market typically leads to an increase in competing mobile providers, which in turn reduces the supply of product, and hence, lower the price to consumers.   C) Wealthier nations tend to charge more for mobile services since the population can generally afford to pay more.   D) Countries with minimal or no fixed-line telecom infrastructure must rely on more costly connection​s​, such as satellites, and the higher cost typically gets passed to the consumer.   E) Operating a local network in…

An American importer of English clothing has contracted to pay an amount fixed in British pounds three months from now. If the importer worries that the US dollar may depreciate sharply against the British pound in the interim, it would be well advised to   a. Buy pounds in the forward exchange market. b. Sell pounds in the forward exchange market. c. Buy dollars in the futures market. d. Sell dollars in the futures market.

4. Pretend you have just been hired as a manager at International Company Limited, a local conglomerate. Your manager informs you that the company wishes to expand abroad to either Jamaica or Barbados and has asked you for some recommendations for managing country risk. There are several specific strategies available to you as a manager to manage country risk in foreign markets. Briefly describe ONE strategy that managers can use tomanage country risk and make suggestions as to why you would be successful. A complete answer will include complete explanation of the strategy and at least one reason as to why employing this strategy will ensure its success in the Caribbean market.

Direct Selling in China With over 1.2 billion people China represented an extremely attractive market for direct sellers such as Amway, Avon Products, Mary Kay Cosmetics, Sara Lee, and Tupperware. Also, in the 1990s the restructuring of state-owned enterprises had reduced workforces, providing an ample supply of people interested in becoming direct sellers, many of whom made door-to-door sales calls. With the Asian and Russian financial crises beginning in 1997 the supply of potential direct sales personnel increased further. In 1995 Amway opened a factory in Guangzhou and began sales in China. By 1997 it had 70,000 independent sales agents in China producing revenue of $178 million.62 Avon’s revenue in China was $75 million. Companies such as Amway and Avon operated by enlisting independent sales agents who bought product from the company and sold it door-to-door. Amway used its standard business model in China with the exception that all other markets were supplied from U.S.…

Who is most likely to benefit when the dollar appreciates against the euro? Multiple Choice a) Foreign buyers of foreign goods b) Foreign buyers of U.S. goods c)U.S. buyers of U.S.goods d) U.S. buyers of foreign goods If the dollar appreciates in the foreign exchange market: Multiple Choice a) net exports will be unaffected. b)net exports will decrease. c)It is impossible to say how net exports will be affected without knowing how net capital outflow is affected. d)net exports will increase. The Argentinian crisis of 2001 was characterized by: Multiple Choice a) international investors losing confidence and shifting the demand for loanable funds to the right. b) government debt becoming more expensive, shifting savings to the left. c)increasing interest rates. d)All of these statements are true. [ i need 3 answers urgent i will 5 upvotes]

Introduction to Trade Policies: Provide an introduction to the significance of trade policies and agreements in the context of international business. Your international business is an oil rig located in Saudi Arabia. Answer the following question with this in mind   1a. Identify and discuss three trade policies that may directly impact your international business venture.      Consider tariffs, quotas, and regional trade agreements as examples.   1b Apply at least two major trade theories to your international business venture.      Discuss how these theories explain or influence your choice of products, target markets, or trade strategies.

Assume that the export price of a Sony Smartphone from Nagoya, Japan is ¥15,000. The exchange rate is ¥87.60/S. The forecast rate of inflation in the United States is 2.2% year and is 1,5% per year in Japan. Use this data to answer the following questions on exchange rate pass through. a. What was the export price for the Sony Smartphone at the beginning of the year expressed in U.S. dollars? per b. Assuming purchasing power parity holds, what should the exchange rate be at the end of the year? c. Assuming 100% pass-through of exchange rate, what will the dollar price of a Sony Smartphone be at the end of the year? SFS oi oninnigsh 001 X d. Assuming 80% pass-through, what will the dollar price of a Sony Smartphone be at the end of the year?

2. On 1 January 2021, the African Continental Free Trade Area (AfCFTA) formally began trading. 54 out of all 55 countries in Africa have given their full backing to this new trade agreement. Explain four benefits that the African countries would derive from this trade agreement. 3. According to international business researchers, only 19% of Arica's foreign trade is Iwith other countries on the African Continent. Explain four reasons why African countries are more likely to trade with Europe and America than they are with each other.

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There are no tariffs or quotas on trade between EU and Norway. The EU and Norway impose the same tariffs on goods from outside. There is free movement between the EU and Norway. The EU and Norway are in a: O a. customs union O b. common market O c. free trade area

Does the U.S. have a trade deficit or surplus? (Research this separately) What are the arguments for protectionism or free trade? How is this affecting (expected to affect) the economy (consumers, business dealings, prices, tariff income generated, etc.) Read Ezekiel 28:18, and Proverbs 31:18. How does trade played an important role in biblical times.

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You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company’s long-term strategic goals. As such, management has requested a report regarding the attractiveness of alternative countries based on the potential return of FDI. Write your report to discuss how you would measure country attractive and eventually making a investment choice in a particular country.

Your CEO has asked you to formulate a recommendation for how to expand into Western Europe.  Your options are (a) to export from the United States, (b) to license a European firm to manufacture and market the computer in Europe, and (c) to set up a wholly owned subsidiary in Europe.  Evaluate the pros and cons of each alternative and choose one.  Suggest a course of action to your CEO