Chapter 2, Problem 1CT

Question Which of the following would contribute to a positive trade balance for a country? Answer a. Having tourists visit the country b. Importing textiles c. Having foreign residents buy the government bonds of the country d. Importing financial services

Explain the following a) Gain or losses on foreign exchange translations. b )Recording of previous periods errors in revenue and expenditure after preparation of final accounts in the current periods.

13   XYZ Corporation is a U.S.-based corporation. It has decided to move some of its accounting operations abroad. The company will continue to use U.S. GAAP for external reporting purposes. Should the company insist that the employees located in the international locations follow the U.S.-based corporate culture? Explain?

Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Also explain how can we mitigate foreign exchange risk in these countries. 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, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. 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 affect the operating environment of the MNC…

Three former Uruguayan presidents recommended the current administration that without abandoning Mercosur, it should look at major trade blocks associations but at the same time a strong self criticism is needed because maybe the problem is not in Mercosur but in Uruguay. The absence of conditions in the Uruguayan economy to compete for markets and investments, the wrong energy and foreign policies and the infinite tolerance with the bilateral mechanism imposed by Argentina and Brazil in the region are the main causes by which Mercosur has seen its rules and institutions erode and most probably leading it to a major failure. The three leaders are Julio Maria Sanguinetti (1985/1990 and 1995/2000); Luis Alberto Lacalle (1990/1995) and Jorge Batlle (2000/2005). The only living president missing at the conference was Tabare Vasquez (2000/2005), who belongs to the current ruling coalition. “We need powerful friends and partners but distant” said Lacalle who suggested Uruguay should reach…

In a paragraph or two, explain why constructive notice in international transactions can often be less effective when those transactions are completed online.

. _______ Purchasing products or materials in other nationsand bringing them into one’s own country isa. trading.b. balancing.c. exporting.d. importing.e. dumping.

A banker's acceptance is: a. a time draft drawn on the exporter's bank. b. a method to help importers evaluate the creditworthiness of exporters. c. a liability of the importer and the importer's bank. d. an add-on instrument. e. for a maturity of greater than one year. Clear my choice