How do we establish an economic Equivalence.?

Q: A. As an MNC, when would you use the spot rate? Explain your answer. B. If our MNC currency's is…

A: Survival is one of the main motives of business, and to survive it is necessary to grow. MNCs are…

Q: Suppose that you observe the following exchange rates: $1.75/£; $.0075/¥; and £.005/¥. Is there…

A: Exchange rates: $1.75/Pound  $0.0075/ Yen Pound 0.005 / Yen

Q: 47

A: Interest rate parity states that the difference between the interest rate of two currencies would b…

Q: What is the concern for credit risk in anover the counter market versus the credit risk in an…

A: Over-the-counter (OTC) exchange is a decentralized form of the market. In this, two parties trade…

Q: 1. What is financial intermediation?

A: Comments; Multiple Questions asked   Financial intermediation It is a mechanism whereby surplus…

Q: O a. If the Yen appreciates against the GBP, then the MNC will stand to make a loss on its GBP…

A: When home currency appreciate against the other currencies than less amount to paid in for foreign…

Q: What are the difference between intrapreneurship and entrepreneurship

A: Entrepreneurship means the willingness of an individual to start a business and undertake the risk.…

Q: etween: i. A Primary Market and Secondar

A: Primary Market The process through which a market becomes a source of securities is referred to as a…

Q: Explain why nations trade, using the Heckscher-Ohlin model. Further, explain the pattern of trade…

A: Trade is the voluntary exchange of goods and services between various economic agents. Both parties…

Q: 5.Will a company use the same exchange rate when translating ,Assets ,Liabilities,Revenues and…

A: General Introduction: Translation of currency is a process where one currency is converted in terms…

Q: Describe the method used to establish the Economic equivalence at period 0?

A: Economic Equivalence sets the cash flows in such a way that its value is adjusted for the time…

Q: pricing simultaneous transactions and to decompose a total CVA into its trade-level contributions…

A: Here discuss about the details of the uses of incremental CVA and marginal CVA for the trade and…

Q: What is free trade what are its pros and cons?

A: Trade is an economic activity in which buying and selling are involved. It involves buying and…

Q: Explain how to defer gains using the like-kind exchange rules.

A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…

Q: How can we make the equivalence calculations of future worth?

A: Future value is the value of the current or the present amount at future specified time for the…

Q: inson Crusoe and Friday discussed in section 10.3 of the text- describe the situation, and some key…

A: The answer had been mentioned below.

Q: ortion

A: Corporation earning can we sub divided into parts  Use to distribute the dividend  Retain the…

Q: How is the compound interest used to establish economic equivalence?

A: Economic Equivalence means funds occurring at different time period will have different economic…

Q: Required: a. What are the indirect exchange rates for the places.)

A: 1 British Pound = $1.60 So 1 Dollar = 0.625 British Pounds ( 1*1/1.60)   1 Canadian Dollar = $ 0.74…

Q: How can economic equivalence at the period o be established?

A: The question is based on the concept of economic equivalence.

Q: How can we establish economic equivalence by selecting the base period?

A: Answer: There is economic equivalence between cash flows which have the same economic influence and…

Q: Solve this attachment.

A: International business or external business can be defined as those business transactions or trade…

Q: Critically evaluate the argument that fixed exchange rate regime is better than flexible exchange…

A: Fixed exchange regime refers to that regime in which exchange rate in a country remains fixed…

Q: What is cross-exchange rate? Give an example.

A: The exchange rate expresses the value of a currency in terms of another currency. It determines the…

Q: What are the advantages of a flexable exchange rate systems?

A: As the name suggests a flexible exchange rate system is one in which the exchange rates are not…

Q: explain what economists attribute so much attention to Real Exchange Rates? Provide an answer that…

A: Exchange rates are the rates in which one currency could be exchanged into the currency of another…

Q: What is "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss

A: Constructive receipt doctrine: According to constructive receipt doctrine policy, the taxpayer…

Q: Where does the economic equivalence exist? What are its side effects?

A: The existence of economic equivalence is in between the cash flows having a similar economic effect…

Q: the modern thoery of trade is based in the principle of ?

A: The modern thoery of trade is based in the principle of ?

Q: Which of the following(s) is (are) proposed as a reason to contribute to a non-participation puzzle?…

A: Non participation puzzleOnly 1/2 of an investor would do participate in a stock market.

Q: age destabilize foreign exchange markets? If yes, which argument do you

A: Foreign exchange market : The foreign exchange market is the market where national currencies are…

Q: A6 You must Answer True or False, then explain your answer: In the US economy, monetary policy and…

A: Introduction: Monetary policy refers to central bank actions aimed at influencing the amount of…

Q: what is the difference between the e

A: The exchange rate is rate at which one currency is exchanged with currency of other country and some…

Q: IF A2 1. Discuss the pros and cons of fixed exchange rate systems and flexible exchange rate…

A: In the exchange system there are two methods one is fixed and other is flexible exchange rate.

Q: u adopt to guide yo

A: Introduction : The financial markets are very volatile in nature due to the dependence on the…

Q: 1. What’s the difference between fundamental analysis and technical analysis?  Don’t simply define…

A: Since, there are more than one question is posted at a time, the answer for first question is only…

Q: In general, which type of foreign exchange exposure is most commonly hedged against? Select one: a.…

A: Transaction foreign exchange exposure is the risk that foreign exchange rates will fluctuate when a…