Questions from Financial Management

Q: Do you think that a country’s government should assist private business in

Do you think that a country’s government should assist private business in the conduct of international trade through direct loans, loan guarantees, and/or credit insurance?

Q: Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm

Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gavethe Swiss client a choice of paying either $10,000 or SF15,000 in three months. a. In the example, Baltimore Machinery...

Q: Omni Advisors, an international pension fund manager, plans to sell

Omni Advisors, an international pension fund manager, plans to sell equitiesdenominated in Swiss francs (CHF) and purchase an equivalent amount of equities denominated in South African rands (ZAR). O...

Q: Researchers found that it is very difficult to forecast future exchange rates

Researchers found that it is very difficult to forecast future exchange rates moreaccurately than the forward exchange rate or the current spot exchange rate. Howwould you interpret this finding?

Q: Define country risk. How is it different from political risk?

Define country risk. How is it different from political risk?

Q: What are the advantages and disadvantages of FDI as compared to a

What are the advantages and disadvantages of FDI as compared to a licensing agreement with a foreign partner?

Q: What operational and financial measures can a MNC take to minimize the

What operational and financial measures can a MNC take to minimize the political risk associated with a foreign investment project?

Q: What factors would you consider in evaluating the political risk associated with

What factors would you consider in evaluating the political risk associated with making FDI in a foreign country?

Q: Explain why and how a firm’s cost of capital may decrease when

Explain why and how a firm’s cost of capital may decrease when the firm’s stock is cross-listed on foreign stock exchanges.

Q: Suppose you are a financial adviser and your client, who is

Suppose you are a financial adviser and your client, who is currently investing only inthe U.S. stock market, is considering diversifying into the U.K. stock market. At themoment, there are neither pa...