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- Give an example of how the competitive environmentinfluences prices. What about government regulationand consumer trends? What are some ways the globalenvironment can influence a firm's pricing strategies?A. As an MNC, when would you use the spot rate? Explain your answer. B. If our MNC currency's is weaker, how will it impact our purchase from the foreign supplier and profits? Solve both parts Wright only as required.....plz I will up voteYour company located in the US imports raw materials from Europe. If the European Central Bank announces to lower the Euro exchange rate, what impact do you expect to see in your business? A. Your company will pay higher US dollar costs to import from Europe. B. Your company will pay lower US dollar costs to import from Europe. C. The Euro exchange rate doesn't have any impact on your company. D. It should reduce your competitiveness in your home market.
- Suppose that you decide to extend the US evidence from Wang (2021) to an emerging market. Select the market and justify your selection . for example in the UK we have FTSE100, FTSE350, and FTSE all share, etc., in the US we have NASDAQ, DJIA, and S&P500, etc. Select an emerging market. Justify your choice from at least two main perspectives: (i) Provide criteria used to label the selected market as an emerging market; (ii) Explain reasons why the research question as in Wang (2021) is of particular interest in your selected market.The Fisher Effect is a familiar economic theory in the domestic market. Define the Fisher Effect and explain why you think it is also appropriately applied to international marketsMicrosoft is contemplating a change in its overseas pricing policy. Currently it is pricing its international sales in foreign currency. The price elasticity for Microsoft products is estimated to be 0.5. Would Microsoft be better off pricing in foreign currency? Explain.
- Q2-10 Which of the following occurs if a country A depreciates its currency relative to country B's currency? Select one: a. A's export goods become cheaper to A's citizens. b. A's export goods become cheaper to B's citizens. c. B's export goods become cheaper to A's citizens. d. B's export goods become more expensive to B's citizens.Gamma airlines is currently considering a) to fix the price for their future jet fuel purchases and b) fixing the exchange rate for their future international receipts. As a financial advisor of the firm, you have advised them: for the first (a) to buy a future on crude oil (cross-hedging) For the latter (b) you suggest a currency future. Assuming Gamma Airline is a USA based firm, and it receives and pay in $. Explain to the board of directors using the above scenarios as an example that: What are the costs of making a futures contract in terms of the settlement, delivery for both events if the price fell below the agreed price and rise above the and who guarantees the fulfilment of contracts?A US manufacturing firm that produces cars in Mexico to sell in the US and the Eurozone would like to reduce the effect of currency fluctuations on its profits. Describe in words the hedging strategy that the company should take. Remember that a possible answer is that the company should not be hedging at all.
- A4) Finance When companies decide to establish themselves in a specific market, they can experience a variety of barriers to entry, Assess the various types of trade restrictions that may affect the international business?Which of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.Which of the following is (are) example(s) of a Eurocurrency market transaction? A bank in Sydney lends euros to a company in Paris. A company in New York borrows euros from a bank in London. A bank in Auckland lends US dollars to a bank in Tokyo, which then on lends the US dollars to another borrower in Jakarta. Chose 1 option from : Only III. I and II. Only I. Only II. II and III.