explain comprehensively what are the challenges faced in using LCS (Local Currency Settlement) ?
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- Although the organizational structure and operating policies of a particular foreign unit determine its functional currency, discuss two actions that a management team might take to ensure that the foreign currency is the functional currency.Which currency would be invoicing currency if a business went to make payment to a UK supplier? A. OMR B. US Dollar C. Euro D. Great Britian Pound sterlingDiscuss the warehouse receipt system. Its history relevant in promoting growth in the agricultural sector in Ghana. How can this system facilitate the development of the derivatives market?
- Real and anticipated volatility in currency valuation increases the risk of doing business outside of one's own currency.From June 2003 to June 2013,the chinese yuan strengthened by 35% against the U.S dollar. What kind of repercussions does this fluctuation represent to the international logistics industry. Give one solution to mitigate this risk.The payment system is define as the mechanism through which funds are transferred between individuals, businesses and governments (economic agents). Prior to the advent of the electronic forms of payment (debit/credit cards, e-wallets etc) transactions were mainly done using physical cash. Notwithstanding electronic forms of payment offers many benefits such as external trade and ease of payments, those are coupled with issues such as reliability, safety (data protection, cybersecurity etc). However, the use of cash, especially in large sums, also has its own limitations and concerns (robberies, logistics etc). Hence, should the government focus more on the electronic forms of payment, or a hybrid? NB: Keep in mind many of our citizens are unbanked (no bank nor credit union accounts) What would you advise the Government? Discuss, offering at least 3 reasons.Describe the role of banking institutions in global trade. How do they help stimulate global alliances? When things go wrong between a customer and a supplier, how are issues resolved with these important "middle-men"?
- 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 examplesAssuming 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 :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…
- how to write business report for halal food to be exported to Dubai. Explain on the mode of entry and the external risk in doing business in DubaiQuestions - answer both 1 and 2 Reserve CurrenciesA. Which currencies does the IMF currently designate as "reserve currencies”?B. What is meant by "reserve currency" and why are reserve currencies important?C. Identify and explain two advantages related to international trade or the US economy, that the US has because the dollar is a reserve currency. D. Identify and explain one disadvantage related to international trade or the US economy, that the US has because the dollar is a reserve currency. The EuroA. How many countries are members of the European Union? (Since the EU is changing and growing, the textbook could be out of date. Be sure to find the current number of countries.)B. Currently, how many of those European Union members have adopted the euro as their currency? (Be sure your answer reflects current data. The textbook may be out of date.)C. Identify and explain two benefits that the Eurozone brings to its businesses and consumers. D. Identify and explain one…The type of currencies used in the oil industry and why?