Course
FIN 565 International Finance
FIN 565 Week 1 Homework Solutions
FIN 565 Week 2 Homework
FIN 565 Week 3 Homework
FIN-565 Week 4 Homework
FIN 565 Week 5 Homework
FIN-565 Week 6 Homework
FIN 565 Week 7 Homework
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[Answered] FIN 565 Week 7 Homework – Banker’s Acceptances
Course
FIN 565 International Finance
Question: Banker’s Acceptances
Describe how foreign trade would be affected if banks did not providetrade- related services.
How can a banker’s acceptance be beneficial to an exporter, an importer, anda bank?
2. Question: Letters of Credit Ocean Traders of North America is a firm based in Mobile, Alabama, that specializes in seafood exports and commonly uses letters of credit (L/Cs) to ensure payment. It recently experienced a p...
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[Answered] FIN-565 Week 6 Homework – Foreign Target Alaska
Course
FIN 565 International Finance
Question: Pricing a Foreign Target Alaska, Inc., would like to acquire Estoya Corp., which is located in Peru. In initial negotiations, Estoya has asked for a purchase price of 1 billion Peruvian new sol. If Alaska completes the purchase, it would keep Estoya’s operations for two years and then sell the company. In the recent past, Estoya has generated annual cash flows of 500 million new sol per year, but Alaska believes that it can increas...
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[Answered] FIN 565 Week 5 Homework -DFI
Course
FIN 565 International Finance
Question: Host Government Incentives for DFI Why would foreign governments provide MNCs with incentives to undertake DFI there?
Question: DFI Location Decision Decko Co. is a U.S. firm with a Chinese subsidiary that produces smart phones in China and sells them in Japan. This subsidiary pays its wages and its rent in Chinese yuan, which is stable relative to the dollar. The smartphones sold to Japan are denominated in Japanese yen. Assume t...
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[Answered] FIN-565 Week 4 Homework – exchange rate
Course
FIN 565 International Finance
Question: Sources of Supplies and Exposure to Exchange Rate Risk Laguna Co.(aS. firm) will be receiving 4 million British pounds in one year. It will need to make a payment of 3 million Polish zloty in one year. It has no other exchange rate risk at this time. However, it needs to buy supplies and can purchase them from Switzerland, Hong Kong, Canada, or Ecuador. Another alternative is that it could also purchase one-fourth of the supplies fro...
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[Answered] FIN 565 Week 3 Homework – Finance International
Course
FIN 565 International Finance
Question: Covered Interest Arbitrage Assume the following information:
Question: Interest Rate Parity Consider investors who invest in either U.S. or British one-year Treasury bills. Assume zero transaction costs and no taxes. a) If interest rate parity exists, then the return for U.S. investors who use covered interest arbitrage will be the same as the return for U.S. investors who invest in U.S. Treasury bills. Is this statement true or f...
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[Answered] FIN 565 Week 2 Homework – Percentage Depreciation
Course
FIN 565 International Finance
Question: Percentage Depreciation Assume the spot rate of the British pound is $1.73. The expected spot rate 1 year from now is assumed to be $1.66. What percentage depreciation does this reflect?
Question: Inflation Effects on Exchange Rates Assume that the S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars ...
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[Answered] FIN 565 Week 1 Homework Solutions – International
Course
FIN 565 International Finance
Chapter 1 & 2
Question: Imperfect Markets
Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets.
If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets? Why?
2. Question: Benefits and Risks of International Business. As an overall review of this chapter, identify poss...
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