Hedging Currency Risks At AIFS

The goal of this case is to help Sandra Meyer develop a presentation to address Henry Bosse’s concerns about international investments. The general idea is to demonstrate to Henry the benefits of international diversification, if any. To achieve this goal, you need to have a view on 1) the impact of foreign exchange (FX) rates on the return and risk of international investments, and 2) the impact of having more assets on the return and risk of the investment portfolio To form views on these two points, answer the following questions: I. The impact of FX rates on the risk and return of foreign investments 1a) Using data in Appendix A, calculate the

The world still faces problems today that are linked back to World War I. World War I killed more that sixteen million people and crushed century-old empires and dynasties, all in four years. A country that still faces many conflicts from this time is Iraq. Iraq became a country after the Ottoman Empire was split up and Britain cobbled different provinces together. These provinces were at odds as much back then as they are today. Britain installed a king in Iraq. This was followed by Suddam Hussein overthrowing the king in 1968. He ruled until a U.S. invasion in 2003. This invasion led to the country having many different views and problems regardless of efforts from

What triggered the Iraq War that we are currently still having? During this time in history we were still in the cold war as well Cold War (1945–1991), a lot of events has happened during this time period. I am going to start with the Iran-Iraq war which started in 1980 and ended in 1988. The war began when Iraq invaded Iran, launching a simultaneous invasion by air and land into Iranian territory on 22 September 1980 following a long history of border disputes, and fears of Shia insurgency among Iraq's long-suppressed Shia majority influenced by the Iranian Revolution. (Wikipedia, Iran–Iraq War, 2011). This war had at least a million and half casualties and it severely damaged both their economies, the Iran-Iraq war conflict is often

A currency exposure is any business operation whose profitability can be impacted by a currency exchange rate fluctuation.

a) Conflict and violence – Citizens protesting against their government, Territorial disputes, Disputes based on ethnic, racial, or religious divisions

The Gulf War in 1990 and the invasion of Iraq in 2003 both had a profound impact not just on the countries directly involved - primarily Iraq and the United States (US) - but also on the geo-politics of the world. Arguably, the War ended in a stalemate because the Iraqi regime that had started the War by invading Kuwait remained in power. Perhaps inevitably then, in March 2003 the US and its allies invaded Iraq with the stated aim of overthrowing the regime of Saddam Hussein and destroying that regime's Weapons of Mass Destruction (WMD). Some similarities between both Wars are immediately obvious: for example, the same country, the

the gulf wars in the 1980s­90s. The United States’ war on Terrorism earned them the official

(5) high levels of crime, dilapidated housing and general environmental deterioration; (6) inadequate educational, health, social and other human services;

A lot of it had to do with the ending of the gulf war. But let’s take a few steps back and let me explain why the Gulf war had such a big impact leading up to the 10 year Iraq war. So there were a lot of different names for the Gulf war such as Desert storm, Desert Shield, Etc. For this Paper I will just be calling it the Gulf war. The main reason why the Gulf war’s even happen was because Iraq decided to invade Kuwait for whatever reason. The problem with that is the United States and other major power nations of the world didn’t like that. Reasons to believe the United States had the biggest problem with it and asked other power nations to join in the fight to liberate Kuwait from Iraqi troops. So nations like the United Kingdom, Egypt all joined the U.S. to start an Arial attack which is bombing by

interests between great powers with a million causalities. Either in 1980s or today in twenty-first century, the controversy of US involvement in the Middle East never stops.

Iraq has seen many hardships over the last few decades. Their hardships started with an eight-year war over territory with Iran which began in 1980. In 1990, Iraq invaded the country of Kuwait, which led to the Gulf War. Then, Iraq ignored sanctions would not comply with the UN Security Council over weapons of mass destruction. This led to the invasion of Iraq which was led by the United States in March of 2003.

As is evident throughout US history, our dependence on foreign oil continued into the 1990s and once again it created conflict. Turmoil in the Middle East threatened the supply of oil once again.

4.) List and discuss at least three (3) underlying causes of conflict in the Middle East.

The first being the unstable atmosphere in the Middle East. This terrorist attack was brought about due to political backlash involving the United States’ and its allies – primarily Israel. These Lebanese Hezbollah members accused the United Nations of siding against Muslims and showing favor to Christians in the Middle East. This particular incident is also important as it created the United States’ stance on terrorism. The White House issued a short statement regarding these terrorists, “We do not make concessions to demands, and we do not encourage other governments to do so.” [Word Count:

* Refer sheet “10000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 10000.