Module Four Assignment Guidelines and Rubric

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.…

9. The process of buying a currency low and selling it high in different markets is known as A. Currency Swap B. Spot exchange rate C. Pegged exchanged rate D. None of the Above

Which statement is incorrect related to forward exchange rates? * They are relevant for any non-domestic business transactions. They reflect expectations about the future value of currencies They are normally determined by the forces of demand and supply in the in the FOREX Market. They are usually slightly lower than the spot rate. none of the above

Suppose that on January 1 2015, the TL price of the dollar is 2.50 over the year, inflation rate in Turkey is 35 % and U.S. inflation rate is 15%. If the exchange rate is $1= 2.80 TL at end of the year, which currency appears to be overvalued?

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…

The following are estimates relating to the 2020 budget of Thermo Blast that producesspecialized ornaments for the Caribbean:Selling Price---------------------------------$1500Variable cost per Ornament---------------$700Fixed annual cost----------------------------$120000Nett Profit (After tax)-----------------------$800000Income tax rate-------------------------------25%The mid-year review of the income statement revealed that sales were not at the expected level.For the six months of the year to June 2020, 320 units were sold at the estimated selling pricewith variable cost as planned. However, the net profit projection for 2020 would not beachieved unless management decisions are made.The following mutually exclusive alternatives were presented to management:a) The selling price should be reduced by $150. This reduction in selling price will allow1500 units to be sold for the balance of the year. The budgeted fixed cost and variablecost per unit will remain unchanged.b) The…

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Related to international business.

5. On October 25 2015, one Euro traded for 1.106 US dollars, and thus one Us dollar traded for 0.942 Euros. If 0.942 is marked on the vertical axis of the diagram depicting equilibrium in the Euro-US dollar market, what should be measured on the horizontal axis? O. The quantity of US dollars, that is traded for Euros. O. The quantity of Euros, that is traded for all other currencies. O. The quantity of US dollars, that is traded for all other currencies. O. The quantity of Euros, that is traded for US dollars.

1) You are the CFO of Apple , and the business is considering entering or expanding its presence in Brazil. Explain the type’s risks inherent to the country and as a CFO provide specific recommendations as to how to mitigate those risks from operating in that market. 2) The business is considering building a facility that will serve as a headquarters for the Latam region.  Critically analyse the factors the business has to consider in international capital budgeting when the project is overseas.

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…

In 1960 a U.S. dollar sold for 620 Italian lire. If PPP held in 1960, what would the PPP value of the exchange rate have been in 1987 if Italian prices rose 12 times and U.S. prices rose 4 times between 1960 and 1987?

1. Why does China specialize in making low cost apparel and the U.S. specialize in civilian  aircraft? 2. Why does the U.S. manufacture many of the parts that go into cars, but ship those parts to  manufacturing plants in Canada and Mexico? 3. If we stopped trading with China, what would happen to the price of clothing and  computers for American consumers? 4. Notice that there is little mention of the U.S. importing food or agriculture. What does that  say about America’s farmers? 5. Why do so many of Mexico’s and Canada’s exports go to the U.S? What problems could  that create for their economies?

Assuming free markets, purchasing power parity refers to a situation in which the real purchasing power of a currency is the same in domestic and international trade. TRUE/False :

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.

Sugar prices in the United States are several times higher than the world price of sugar. This disparity results from a federal government program that keeps enough foreign-produced sugar out of the United States to hold U.S. sugar prices at a high level. The program raises the price of all sweetened foods produced in the United States; it boosts food costs for the average household by more than a hundred dollars per year. Who benefits from the program? Why do you suppose it exists?

Which of the following statements are true about exchange rate risk? Check all that apply: a)A Canadian investor with an investment in U.S Treasury bills faces exchange rate risk. b)Exchange rate risk can be hedged using a futures or forward contract in foreign exchange. c)Exchange rate risk arises from the uncertainty in asset returns due to changes in the exchange rate between the currency of the investor and the foreign currency. d)Exchange rate risk can't be perfectly hedged, even if the return earned in the foreign currency is known beforehand.

Basel III is a global voluntary regulatory risk framework on bank capital adequacy, stress testing, and market liquidity risk. The third Accord focuses on improving the three pillars under Basel II, to mitigate banks against systemic risk by: a.Increasing capital to ensure risk is more adequately covered. b.Improving countercyclical buffers to guard against system impact. c.All of the above. d.Requiring the use of certain ratios for short-term and long-term liquidity coverage.

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated. Price Level 128 125 122 119 116 minus $2 billion. minus $4 billion. $2 billion. с $18 $20 $22 $24 $26 zero Ig $2 $4 $6 $8 $10 G $3 $3 $3 $3 $3 Refer to the table. If this nation's equilibrium price level is 125, its net exports will be: X $1 $2 $3 $4 $5 M $5 $4 $3 $2 $1 Real GDP

Considering an economy with two labor markets – one for agricultural workers and one for manufacturing workers. Suppose there is a Dutch Disease which explains about a major market failure originated in the existence of cheap and abundant natural or human resources that keep overvalued the currency of a country for an undetermined period of time, thus turning non profitable the production of tradable goods using technology in the state-of-the-art. It is an obstacle to growth on the demand side, because it limits investment opportunities. Suppose initially that neither is unionized what will happen to these conditions? a) If manufacturing workers formed a union, what impact would you predict on the wages and employment in manufacturing? b) How would these changes in the manufacturing labor market affect the supply of labor in the market for agricultural workers? c) What would happen to the equilibrium wage and employment in this labor market?

Assume that you recently graduated with a degree in finance and have just reported to work as financial adviser at the brokerage firm of Capital Asas Berhad, Your first assignment is to explain nature of the Malaysian financial markets to Martin Johnson, a potential investor. He expects to invest substantial amounts of money through Capital Asas Berhad. He is very optimistic; therefore, he would like to understand in general terms what will happen to her money. Your supervisor has developed the following questions that you must use to explain the Malaysian financial system to Johnson. A) Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.

In the national income accounts: choose the correct answer(a) Total spending is always equal to total production and income. (b) Total spending is always greater than total production and income. (c) Total spending is always less than total production and income. (d) Total spending may be greater than, equal to or less than total productionand income