Questions from Financial Management

Q: Cuanto Corp. is a U.S. drug company that

Cuanto Corp. is a U.S. drug company that has attempted to capitalize on opportunities to expand in Eastern Europe. The production costs in most Eastern European countries are very low, often less than...

Q: Sambuka, Inc., can issue bonds either in U.S

Sambuka, Inc., can issue bonds either in U.S. dollars or in Swiss francs. Dollar-denominated bonds would have a coupon rate of 15 percent; Swiss franc-denominated bonds would have a coupon rate of 12...

Q: a. Describe how foreign trade would be affected if banks did

a. Describe how foreign trade would be affected if banks did not provide trade-related services. b. How can a banker’s acceptance be beneficial to an exporter, an importer, and a bank?

Q: Every quarter, Bronx Co. ships computer chips to a firm

Every quarter, Bronx Co. ships computer chips to a firm in central Asia. It has not used any trade financing because the importing firm always pays its bill in a timely manner upon receipt of the comp...

Q: Briefly describe the Working Capital Loan Guarantee Program administered by the Export

Briefly describe the Working Capital Loan Guarantee Program administered by the Export Import Bank.

Q: Describe the Small Business Policy of the Export-Import Bank.

Describe the Small Business Policy of the Export-Import Bank.

Q: Describe the role of the Overseas Private Investment Corporation (OPIC).

Describe the role of the Overseas Private Investment Corporation (OPIC).

Q: Ocean Traders of North America is a firm based in Mobile,

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 problem,...

Q: a. Why would an exporter provide financing for an importer?

a. Why would an exporter provide financing for an importer? b. Is there much risk in this activity? Explain.

Q: Explain why firms may issue stock in foreign markets. Why might

Explain why firms may issue stock in foreign markets. Why might U.S. firms have issued more stock in Europe after the inception of the euro?