Questions from Corporate Finance

Q: Why did the fixed exchange rate regime of 1945–1973 eventually

Why did the fixed exchange rate regime of 1945–1973 eventually fail?

Q: Explain how the asset market approach can be used to forecast future

Explain how the asset market approach can be used to forecast future spot exchange rates. How does the asset market approach differ from the BOP approach to forecasting?

Q: What are the main phases that Trident passed through as it evolved

What are the main phases that Trident passed through as it evolved into a truly global firm? What are the advantages and disadvantages of each?

Q: Define and explain the theory of comparative advantage.

Define and explain the theory of comparative advantage.

Q: Under the gold standard all national governments promised to follow the “

Under the gold standard all national governments promised to follow the “rules of the game.” This meant defending a fixed exchange rate. What did this promise imply about a country’s money supply?

Q: What are the advantages and disadvantages of fixed exchange rates?

What are the advantages and disadvantages of fixed exchange rates?

Q: Explain what is meant by the term impossible trinity, and why

Explain what is meant by the term impossible trinity, and why it is true.

Q: What are the main component accounts of the current account? Give

What are the main component accounts of the current account? Give one debit and one credit example for each component account for the United States.

Q: What is the difference between a direct foreign investment and a portfolio

What is the difference between a direct foreign investment and a portfolio foreign investment? Give an example of each. Which type of investment is a multinational industrial company more likely to ma...

Q: What are the main components of the financial accounts? Give one

What are the main components of the financial accounts? Give one debit and one credit example for each component account for the United States.