Beruflich Dokumente
Kultur Dokumente
a. Non-recourse
b. Recourse
c. Resource
d. Risky
2, ____________ is the process that cancels via offset all, or part, of the debt owed by
one entity to another related
entity.
a. Syndicated banking
b. Centralized depositing
c. Multilateral netting
d. Debt cancellation
3. A firm in Thailand has an account payable denominated in the Thai bhat. Their U.S.
supplier has asked the Thai firm to pay the accounts payable earlier than currently
scheduled, and has offered the Thai company a discount to do so. The Thai firm is
unwilling to pay early. In this circumstance, it most likely that
a. both the Thai firm and the U.S. firm expect the Thai bhat to appreciate.
b. both the Thai firm and the U.S. firm expect the Thai bhat to depreciate.
c. the U.S. firm expects the bhat to appreciate and the Thai firm expects the bhat to
depreciate.
d. None of the above
Assume the following information about Russia and Canada for the production of
cases of vodka and pallets of construction grade 2x4 lumber. With one unit of
production (a mixture of land, labor, capital, and technology). Russia can produce 10
cases of vodka or 8 pallets of 2x4 lumber. Canada can produce 6 cases of vodka or 12
pallets of 2x4 lumber with each unit of production. Each country dedicates a total of
1000 units of production for vodka and lumber. This information is reproduced in the
following table.
6 . If Russia and Canada decide to specialize in the production of vodka and lumber,
what is the total amount of vodka and lumber that will be produced?
7 . It will be beneficial for both Russia and Canada to trade as long as the trading
ratio of vodka to lumber is between _________________.
a. $55,000
b. $57,750
c. $52,250
d. $57,900
13. Under the temporal method, what is Ajax's translation gain (loss).?
a. a gain of $294,000
b. a gain of $192,000
c. a loss of $174,000
d. a loss of $12,000
14.Under the current rate method, what is Ajax's translation gain (loss).?
a. a gain of $294,000
b. a gain of $192,000
c. a loss of $174,000
d. a loss of $12,000
a. If you converted $10,000 to pounds and then back to dollars, how many dollars would
you end up with?
b. Suppose you could buy pounds at the bid rate and sell them at the ask rate. How many
dollars would you have to transact in order to earn $1,000 on a round-trip transaction
(buying pounds for dollars and then selling the pounds for dollars)?
3. A U.S. Subsidiary in Spain produce and sells in Spain. Exchange rate is 1 peseta =
0.01$. Transaction- Selling price 100000, Device cost 40000 and margin 60000 pesetas
respectively. Inflation in Spain during the year is 20% and Spain devalues its currency
by 20%. What is the Spain's dollor profit margin on the transaction given above after
devaluation?
5. Kao Corporation is a highly innovative and efficient Japanese company that has
managed to take on and beat Proctor & Gamble in Japan. Two of Kao's revolutionary
innovations include disposable diapers with greatly enhanced absorption capabilities and
concentrated laundry detergent. However, Kao has had difficulty in establishing the kind
of market-sensitive foreign subsidiaries that P&G has built.
a. What competitive advantages might P&G derive from its global network of
market-sensitive subsidiaries?
b. What competitive disadvantages does Kao face if it is unable to replicate P&G's global
network of subsidiaries?
1 Becoming a multinational is not matter of choice but, rather one of survival. What
are the strategies followed to survive as a global player? Discuss the success
strategy followed by Japanese product marketers in USA practiced to surive as a
global player.
3, If economists argue for the return of gold standard era in foreign exchange
management. what are the merits of the system . Explain