Any event that increases the U.S. demand for euros should result in a(n) ____ in the value of the euro with respect to ____, other things being equal.
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International trade:
International trade:
The valuation of an MNC should rise when an event causes th…
The valuation of an MNC should rise when an event causes the expected cash flows from foreign subsidiaries to ____ and when the foreign currencies denominating these cash flows are expected to ____.
A share of the ADR of a Dutch firm represents one share of t…
A share of the ADR of a Dutch firm represents one share of that firm’s stock that is traded on a Dutch stock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the U.S. market opens, the euro is worth $1.10. Thus, the price of the ADR should be ____.
A Japanese yen is worth $.0080, and a Fijian dollar (F$) is…
A Japanese yen is worth $.0080, and a Fijian dollar (F$) is worth $.5900. What is the value of the yen in Fijian dollars (i.e., how many Fijian dollars do you need to buy a yen)?
The balance of payments is a summary of all transactions bet…
The balance of payments is a summary of all transactions between domestic and foreign residents for a specific country over a specified period of time.
Assume that $1 is equal to .85 euros and 98 yen. The value o…
Assume that $1 is equal to .85 euros and 98 yen. The value of the yen in euros is _______.
You just came back from Canada, where the Canadian dollar wa…
You just came back from Canada, where the Canadian dollar was worth $[x]. You still have C$[y] from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $[z]. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for $[d]per peso. You met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$[y] for [v] pesos. Calculate the amount of pesos you would receive if you exchange the C$ for pesos at the foreign exchange desk. Round your answer to the nearest whole peso. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. A negative value should be indicated by a minus sign. Do not include the pesos sign.
Livingston Co. has a subsidiary in Korea. The subsidiary rei…
Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston’s expected cash flows from domestic business are $100,000, and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of the won is $.0012. What are the expected dollar cash flows of Livingston Co.?
What are the main components of the current account ?
What are the main components of the current account ?