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Duve, Inc., desires to penetrate a foreign market either by crafting a licensing agreement with a foreign firm or by acquiring a foreign firm.  Explain the differences in potential risk and return between licensing with a foreign firm and acquiring a foreign firm.

Assume that a bank’s bid rate on Japanese yen is $.0041 and its ask rate is $.0043. Its bid/ask percentage spread is:​

Any event that reduces the U.S. demand for Japanese yen should result in a(n) ____ in the value of the Japanese yen with respect to ____, other things being equal.​

If U.S. inflation suddenly increased while European inflation stayed the same, there would be:​

​The primary component of the current account is the:

Which of the following is not a factor that affects the bid/ask spread?

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.​

International trade:

​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 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 ____.