International Finance - 1741 Words

Exercise Questions for Mid-term Exam 1. Which of the following factors of production DO NOT flow freely between countries? A) Labors and Land B) Financial capital C) (Non-military) Technology D) All of the above factors of production flow freely among countries. 2. Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and  £4.2474 in British pounds. Therefore, the exchange rate of pounds per dollar under this fixed exchange regime was A)  £4.8665/$. B)  £0.2055/$. C) always changing because the price of gold was always changing. D) unknown because there is not enough information to answer this question 3. The post WWII international monetary agreement that†¦show more content†¦pound, yen, and Chinese yuan. 21. A ________ transaction in the foreign exchange market requires an almost immediate delivery (typically within two days) of foreign exchange. A) spot B) forward C) futures D) none of the above 22. A forward contract to deliver British pounds for U.S. dollars could be described either as ________ or ________. A) buying dollars forward; buying pounds forward. B) selling pounds forward; selling dollars forward. C) selling pounds forward; buying dollars forward. D) selling dollars forward; buying pounds forward. 23. A common type of swap transaction in the foreign exchange market is the ________ where the dealer buys the currency in the spot market and sells the same amount back to the same bank in the forward market. A) forward against spot B) forspot C) repurchase agreement D) spot against forward 24. The ________ is a derivative forward contract that was created in the 1990s. It has the same characteristics and documentation requirements as traditional forward contracts except that they are only settled in U.S. dollars and the foreign currency involved in the transaction is not delivered. A) nondeliverable forward B) dollar only forward C) virtual forward D) internet forward 25. If the direct quote for a U.S. investor for British pounds is $1.43/ £, then the indirect quote for the U.S. investor would be ________ and the direct quote for the British investor would be ________. A)  £0.699/$;Show MoreRelatedInternational Finance Exam4417 Words   |  18 PagesInternational finance FIN 412 Exam #2 MC:  Examples of single-currency interest rate swap and cross-currency interest rate swap are:   A.  fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating- rate debt obligations for fixed-rate interest payments of the other counter party B.  fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency forRead MoreSources Of Finance For Synergy International Limited1627 Words   |  7 Pagessources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares although there would be issue costs. Finance, in the wayRead MoreInternational Trade and Finance1501 Words   |  7 PagesLinda Luc Duong International Trade and Finance ECO/372 August 27, 2012 Matthew J. Angner International Trade and Finance When there is a surplus of imports brought into the United States it means that the price of the products will drop. Companies in the United States are competing with the Chinese made products will suffer from price drops on goods. Lower prices on goods will benefit consumers. Large screen Liquid Crystal Display (LCD) and High Definition Television (HDTV) is a good exampleRead MoreInternational finance management7674 Words   |  31 PagesAgency Problems Management Structure of an MNC Why Fimrs Pursue International Business Theory of Comparative Advantage Imperfect Markets Theory Product Cycle Theory How Firms Engage in International Business International Trade Licensing Franchising Joint Ventures Acquisitions of Existing Operations Establishing New Foreign Subsidiaries Summary of Methods Valuation Model for an MNC Domestic Model Valuing International Cash Flows Uncertainty Surrounding an MNCs Cash Flows UncertaintyRead MoreCase: International Trade and Trade Fina nce885 Words   |  4 PagesFITTskills: International Trade Finance Case Study #1: New Modes of Trade Finance Case Study #1: New Modes of Trade Finance Trade finance in the twenty-first century: plug and pay? Palate-Able Delights (PAD) is a niche retailer of high-end food products imported from various parts of the world. Iranian saffron and caviar, French champagnes, Italian truffles and olive oils, vintage balsamic vinegars, fine cheeses, reserve wines from the leading vintners, even limited-availability spring waters†¦ifRead MoreInternational Finance and Economy Essay1225 Words   |  5 Pagesall-time high of 149,713.4 USD Million in November of 2013. The foreign currency reserve for Turkey in December of 2013 was 109,279.75 USD million. Some worry that much of the foreign capital that finances Turkey’s current account deficit is of the flighty sort, which can leave quickly. (International Reserves and Foreign Currency Liquidity – TURKEY) With â€Å"hot money† exiting out of Turkey and their central bank hiking interest rates to try to keep their currency from falling any more, it makes itRead MoreTrade Finance and International Trade1903 Words   |  8 PagesAccording to Branch trade finance has become a strong bargaining point in the conduct of international trade. Negotiating strategy needed to reduce finance risk (Branch, 2005). Trade finance is a topic contained the financial facilities industry. Manufactured goods is sold and distributed to overseas; therefore, it takes longer to get paid. Additional time and energy is required to make sure that buyers are trustworthy and creditworthy. Also, foreign buyers who are just like domestic buyers. TheyRead MoreInternational Trade And Finance ( Bus571 )2452 Words   |  10 PagesNtec Concordia Institute of Business Submitted to: Adrian liew Course: Diploma in Business Management (Level-7) Subject: International trade and finance (BUS571) Submitted By: Amanpreet singh bajaj Student ID:CIB00002YB Assignment: International trade Introduction Quality NZ is a niche supplier of New Zealand’s first quality products and services to the rapidly expanding Indian market, with a specific focus on the food and BeverageRead MoreGlobalization and Its Impact on International Finance6130 Words   |  25 PagesGLOBALIZATION AND ITS IMPACT ON INTERNATIONAL FINANCE CONTENTS 1. Overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...1 2. Introduction to the concept of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 3. Different areas of effect of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 4. International finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance†¦Ã¢â‚¬ ¦....12 ii. Globalization and its impact on developing countries†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreEssay on finance case vanguard international growth830 Words   |  4 Pagesï » ¿ Issues 1. Explain why an individual investor might want to invest in an international growth fund? 2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds, and those risk that would be unique to an international fund. 3. Discuss how the fact that foreign companies are not subject to the same accounting, auditing, and financial reporting standards and practices as U.S. companies poses

Riwt 1 Free Essays

RIWT1 Crystal Jorgensen Task 1 03/19/2013 SID:000187304 Lets take a journey. A journey back to a time and a place that is unknown to us without the history and expression of Literature and Art. These moments are the expression of color, the fine detail, the heroics, and the stories that bring us to our current and most knowledgeable time in literature and the arts. We will write a custom essay sample on Riwt 1 or any similar topic only for you Order Now Neoclassicism and Romanticism are two very important time periods in the literary movements in English literature that helped shape our way of life today. Although these time periods are recognized as very opposite they share many similarities and we continue to learn and grow from them. Lets go back†¦ To a new era, widespread and influential for paintings and the other visual arts, a reaction against the sensuous and frivolously decorative Rococo style that dominated European art from the 1720s on. Beginning in the 1760s, Neoclassicism arose, reached its height in the 1780s and ‘90s during the French Revolution and lasted until about the 1850s. Neoclassicism was impacted by the exploration and excavation of the buried Roman cities of Herculaneum and Pompeii; the excavations of which began in 1738 and 1748, respectively. It was because of these â€Å"new† discoveries that people wanted to revive the past and took interest in the classical forms and ideas that started the neoclassical era. It was the combination of new and â€Å"classical† that made artist want to convey a serious moral such as justice, honor, and patriotism. Ideally, this style portrays an array of knowledge so vast that it leads to enlightenment. The Neoclassical style sees nature is defined as human nature and that society is more important than the individual. In summary, Neoclassicism focused on Greek and Roman history and was inspired by Classical Rome, patriotism, courage, and honor. The best-known painter of the time was J. L. David who painted â€Å"Napoleon Crossing the Saint Bernard,† just one of many amazing paintings in that time. The technique used in this era is a stressed drawing with lines, not color; no brush strokes. The tone set is calm and rational but at the same time play the role to provide inspiration and be morally uplifting. Neoclassical artist value order and solemnity and it can be seen throughout their paintings. Inspired by the classics, touched by a revolution, and enforced order we have the â€Å"new† classics. Neoclassicism. Now lets get into the hippie era of the 18th century†¦of free love, peace, and saving the trees. No not really. Romanticism was much more than that it depicted a much deeper heightened since of feeling and euphoria. If it made you feel good and happy you would focus on that and that’s all that mattered. But that is still not all; romanticism was a time for passion, any kind of passion whether it was good or bad. Inspired by the medieval, baroque eras, and the middle and Far East regions of the world. Romanticism started in the late 18th century and continued into the mid 19th century. The characteristics that follow the romantic era is one of a deepened appreciation of the beauty for nature; and exaltation of emotion over reason and intellect; a heightened sense of human personality, moods, and mental potentialities. The romantics were very occupied with the exceptional figures, such as the hero or genius and focused on their inner passions and struggles. A couple of the best known artist of the time were Eugene Delacroix and Theodore Gericault, the artists were viewed as a supreme individual creators, their creative spirit was more important than strict rules or traditional procedures; the emphasis on imagination was a gateway to experience spiritual truth. With national and ethnic origins there was an obsessive interest in folk culture and the medieval era, which triggered a special liking for the exotic, mysterious, weird, the remote, the monstrous, diseased, and the satanic. The role of the art was dramatic it was to carry the viewer away with its unrestrained, rich color, and visible brush strokes. Neoclassicism and Romanticism are in fact to very different eras. While to neoclassical era wanted to re-invent the classics, the romantic era wanted to expressive in every form not holding back restraint on the mere idea of being bound by the old classic rules. But this doesn’t stop them from having similarities either. They both were on a spiritual mission; the art itself wants to portray knowledge and enlightenment for neoclassicism and romanticism wants you to experience spiritual truth. Although these eras are on very opposite ends of the spectrum when it comes to the arts they both wanted to find a new spirit of the time, to change it for the better. Like J. L David’s painting â€Å"Napoleon Crossing the Saint Bernard† is very lifelike and perfect not being able to see the brush strokes but making the feeling of nobility, strength, and honor very present in his work. This particular piece is a perfect example of the time being right after the revolution. Eugene Delacroix’s painting â€Å"Liberty leading the people† This is such and amazing piece of art as well and although you can see more brush strokes it is also such a great example of the time. Delacroix is able to put so much detail and really paint the emotion of freedom and leadership. Both these painting depict a transformation, a want for change. The interesting thing is in those brush strokes, neoclassicism believed they needed to have that perfectionism it showed order, restraint, and rationalism; whereas, romanticism felt that the brush strokes needed to be seen so as to show emotion, passion, and life. Both of these eras were very influenced by different eras like with neoclassical they wanted so desperately to get out of the Rococo style; is was the Age of Enlightenment; and it was right after the revolution. Neoclassical was very impressed and inspired by the classical era and made something old, new again. Romanticism was influenced by neoclassicism it was inspired as a revolt against social and political norms of the Age of Enlightenment and was partly a reaction from the industrial revolution. Although, these eras seemed to influence each other in ways a teenager would want to try to change the rules at home. These eras very much influence our history, knowledge, learning, and inspiration today. Works Cited http://www. britannica. com/EBchecked/topic/508675/Romanticism http://www. buzzle. com/articles/romanticism-characteristics-of-romanticism. html http://www. buzzle. com/articles/difference-between-romanticism-and-neoclassicism. html http://lilt. ilstu. edu/jhreid/neoclassicism. htm http://en. wikipedia. org/wiki/Romanticism How to cite Riwt 1, Papers

Managing Across Borders Strategic Alliances Facilitate Organizations

Question: Discuss about the Managing Across Borders for Strategic Alliances Facilitate Organizations . Answer: Introduction Joint ventures or strategic alliances facilitate organizations with complementary skills and competence, which enables them to benefit from each others strength. They are familiar regarding technology, and other domains, in the event of a firms desire to be in an expansionist phase by the means of sales and operations, which is governed by a legal agreement between the two entities to access, and share the trademarks, assets, and technology. Nokia and Siemens, took a major step towards strategic alliance in the year 2006, when they entered into a joint venture contract to combine their fixed line and mobile phone network businesses. The chief executive of Siemens, Klaus Klienfeld, had stated that this venture was a significant step to strengthen their position in the market so that they are able to offer best quality services to its customers and earn revenues, tackling the challenges that come with convergence of technologies. Risk Analysis: Although the two companies have come together to mutually benefit from the strategic alliance, still a few risks are involved which can prove to be a potential threat to their growth, if not tackled appropriately. Since Nokia has no business in fixed-line or wire-line, it is now given with the responsibility of running a business in which Siemens has been continuously facing downturns since six years (Cavusgil et al., 2014). This could be a tricky situation for the company. The merging of these two companies can also be risky on the grounds of expense involved and the competition, which is likely to threaten the management to get the real value of the strategic alliance. The shareholders could also suffer in the short term, since this is a long haul contract, in which all the revenue generated will be revolving around the economies of scale and reaping full advantages of the rapidly converging wireless and fixed markets (Ding et al., 2013). Organizational controls: In order to cut off any possibilities of risks that is involved in entering the joint venture with Siemens, conducting a scanning process with respect to its legal, regulatory and accounting practices is a wise idea. This will give Nokia a clear idea if the venture is going to be a successful one. This screening will also ensure that the venture partner, Siemens will be able to deliver on its financial promises. Managing the staff after the companies enter a joint venture or strategic alliance can be a tricky situation as the staff is acquainted with the previous organizational structure and may find it difficult adapting to the change (Ertug et al., 2013). The solution could be a well-planned contract that embodies the structure, roles, rights and responsibilities of everyone working for the company. This will help in reducing the gap and bring the parties from the Nokia and Siemens on the same page. Trust is also a valuable instrument in controlling risks that emanate from global strategic alliances. Trust can act as a gateway to cooperative relationship between the partners. If the respective management of Nokia and Siemens trust each others intentions, they will be able to perform their responsibilities according to their contracts, with minimum conflicts (Sun Lee 2013). Conclusion The global Giants Nokia and Siemens formed a strategic alliance to achieve certain goals, which they could not have achieved individually. They must maintain their status as separate and independent entities, and reap benefits of the partnership until the contract ends. If the management on both the sides appropriately applies the instruments of trust and control, all the possibilities related to risks can be kept at bay. References: Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014). International business. Pearson Australia. Ding, R., Dekker, H. C., Groot, T. (2013). Risk, partner selection and contractual control in interfirm relationships. Management Accounting Research, 24(2), 140-155. Ertug, G., Cuypers, I. R., Noorderhaven, N. G., Bensaou, B. M. (2013). Trust between international joint venture partners: Effects of home countries. Journal of International Business Studies, 44(3), 263-282. Sun, S. L., Lee, R. P. (2013). Enhancing innovation through international joint venture portfolios: From the emerging firm perspective. Journal of International Marketing, 21(3), 1-21.