Discuss different forms of risk that any multinational enterprise might be exposed to the recent geopolitical tension in Ukraine and Russia. Please solve in 45 mins will thumbs up no plagiarism please.
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12
Discuss different forms of risk that any multinational enterprise might be exposed to the recent geopolitical tension in Ukraine and Russia.
Please solve in 45 mins will thumbs up no plagiarism please.
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- MULTINATIONAL FINANCIAL MANAGEMENT Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually buys its raw materials in several different foreign countries using several different foreign currencies. The matter is further complicated because Yohe often sells its products in other foreign countries. One product in particular, the SY-20 radio transmitter, draws Component X, Component Y, and Component Z (its principal components) from Switzerland, France, and the United Kingdom, respectively. Specifically, Component X costs 165 Swiss francs Component V costs 20 euros, and Component Z costs 105 British pounds. The largest market for the SY-20 is Japan, where the product sells for 50,000 Japanese yen. Naturally. Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. You will find Tables 17.1, 17.2, and 17.3 useful for completing this problem. a. How much in dollars docs it cost Yohe to produce the SY-20? What is the dollar sale price of the SY-20? b. What is the dollar profit that Yohe makes on the sale of the SY-20? What is the percentage profit? c. If the U.S. dollar was to weaken by 10% against all foreign currencies, what would be the dollar profit for the SY-20? d. If the U.S. dollar was to weaken by 10% only against the Japanese yen and remained constant relative to all other foreign currencies, what would be the dollar and percentage profits for the SY-20? e. Using the 180-day forward exchange information from Table 173, calculate the return on 1-year securities in Switzerland assuming the rate of return on 1-year securities in the United States is 4.9%. f. Assuming that purchasing power parity (PPP) holds, what would be the sale price of the SY-20 if it was sold in the United Kingdom rather than Japan?Question based on the picture attached. (c) Classify each of the following events as a source of systematic or unsystematic risk with explanations: i. After the current election, Donald Trump is no more the President of United States of America and Joe Biden is appointed to take over his place. ii. Harlie Davidson is convicted of insider trading and is sentenced to 10 years of prison. iii. An OPEC embargo raises the world market price of oil. iv. A major consumer product, Ribena loses a product liability case due to misleading Vitamin C advertisement. v. The Supreme Court rules that no employer can layoff an employee without first giving 30-days notice.A6 Use the following information to answer Questions 6-8 According to CNBC(28.2.2022 )the Russian ruble was trading as low as 119 per dollar as offshore trading started in the morning during Asia hours, from nearly 84 per dollar the previous close, according to Factset data. It later pared some of its losses, trading at 93 per dollar by 3:30 p.m. in Moscow 6.Calculate by how much did the Russian ruble depreciate in one day?.
- Efforts to improve global financial system hampered by Covid-19 James Langton October 7, 2020 Global policymakers’ effort to enhance oversight of financial markets by improving data collection, which was launched in the wake of the 2008 financial crisis, is being disrupted by the current Covid-19 crisis. According to a new report from the Financial Stability Board (FSB) and the International Monetary Fund (IMF), the pandemic has created “significant challenges” for the ongoing effort to improve oversight of the global financial system — a project known as the G20 Data Gaps Initiative (DGI). The primary objective of the DGI is to ensure that policymakers have access to reliable and timely statistics, enabling them to better monitor for systemic risk, and to assess vulnerabilities, interconnections, and potential spillovers in the financial system. The report said that lockdowns in response to the pandemic have hampered data collection and required a shift in resources to other…M7 Q6 Minelli Enterprises uses large amounts of copper in the manufacture of ceiling fans. The firm has been very concerned about the detrimental impact of rising copper prices on its earnings and has decided to hedge the price risk associated with its next quarterly purchase of copper. The current market price of copper is $3.00 per pound and Minelli's management wants to lock in this price. How can Minelli ensure that it will pay no more than $3 per pound for copper using a forward contract? Question content area bottom Part 1 (Select the best choice below.) A. Minelli can take a short position in a forward contract for copper, with a delivery date in one month, and a delivery price of $3/lb. To complete this transaction, Minelli must find a counterpart to take the other side of the contract. B. Minelli can take a long position in a forward contract for copper, with a delivery date in one month, and a delivery price of $3/lb. The futures exchange…Anne Dietz at Changi #3 (Singapore). Anne Dietz lives in Singapore but is making her first business trip to Sydney, Australia. Standing in Singapore’s new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader’s booth. She wishes to exchange 1,000 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees: Spot rate: SGD 1.34 = USD 1.00USD Spot rate: USD 0.7640 = AUD 1.00 What is the Singapore dollar to Australian dollar cross rate? 2. How many Australian dollars will Anne get for her Singapore dollars?
- Assume now is 1st September 2020. Hillview Sdn. Bhd. (Hillview) has exported its frozen seafood amounting to €50,000 to Germany is a member of the European Union. The receipt is expected to fall due in two months’ time. Due to uncertainty of the financial market, the finance manager wishes to hedge the risk exposure faced by the company using forward contract. Foreign exchange rates: MYR/EUR(€) Spot 4.1250 - 4.1259 2 months forward 4.2250 - 4.2258 Required: i)The company intends to hedge against the foreign exchange risk of the above transaction using a two-months forward. Calculate the expected amount in Ringgit Malaysia (RM) that Hillview is expected to receive in due course. ii)Differentiate between a spot market and futures market.Q1:Great West States (GWS) is a railroad company operating in the western United States.Juanita Salazar is risk manager of GWS. At the direction of the company’s chief executiveofficer, she is searching for ways to handle the company’s risks in a more economical way.The CEO stressed that Juanita should consider not only pure risks but also financial risks.Juanita discovered that a significant financial risk facing the organization is a commodityprice risk—the risk of a significant increase in the price of fuel for the company’slocomotives. A review of the company’s income and expense statement showed that lastyear about 28 percent of its expenses were related to fuel oil. Juanita was also asked todetermine whether the installation of a new sprinkler system at the corporate headquartersbuilding would be justified. The cost of the project would be $40,000. She estimates theproject would provide an after-tax net cash flow of $25,000 per year for three years, withthe first of these cash…A1 4b 4. The US has experienced large and growing current account deficits for more than 20 years, whereas Japan has experienced large and growing current account surpluses for roughly the same period. The US economy has grown at faster rates than Japan’s over the past 10 years. b. In trade negotiations with the Japanese over the large US trade deficit with Japan, the US administration has urged the Japanese government to undertake a more expansionary fiscal policy. Explain how this might affect the US trade deficit with Japan.
- 12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 X BANK DTH DOLAR XXX120 02 INTERNATIONAL BUYER XXX646 02 IR. CHANGE DIFFERENCE XXXWhich transaction does the journal entry belong to? A) Collection record of the export in the current periodB) Import fee transfer recordC) Foreign income registrationD) Recording of the return of the export priceE) Registration of collection in the next period of the exportQuestion 2The Government of Ghana in an attempt to stimulate the Ghanaian economy after the COVID 19 pandemic has set aside GH¢600 million as a stimulus package for businesses. These stimulus packages are to be in the form of soft loans for businesses. However, some believe that these loans must be extended to firms in industries that are worst hit by the pandemic. As the Finance Director of your company, you have been tasked to present a proposal to the Board of Directors of your company for consideration. Your proposal must address the following;i. The negative impact of the COVID 19 pandemic on the operations of your firm, justifying why your firm needs such a stimulus package? Your arguments should be situated within the industry within which you operate.ii. With your understanding of lessons on capital structure, which other four (4) factors should your firm consider before choosing this source of debt finance?iii. Discuss four (4) risks that your company is likely to be exposed…Question 2The Government of Ghana in an attempt to stimulate the Ghanaian economy after the COVID 19 pandemic has set aside GH¢600 million as a stimulus package for businesses. These stimulus packages are to be in the form of soft loans for businesses. However, some believe that these loans must be extended to firms in industries that are worst hit by the pandemic. As the Finance Director of your company, you have been tasked to present a proposal to the Board of Directors of your company for consideration. Your proposal must address the following;i. The negative impact of the COVID 19 pandemic on the operations of your firm, justifying why your firm needs such a stimulus package? Your arguments should be situated within the industry within which you operate.ii. With your understanding of lessons on capital structure, which other four (4) factors should your firm consider before choosing this source of debt finance?iii. Discuss four (4) risks that your company is likely to be exposed…