Fin 565 - Study guides, Class notes & Summaries

1. Question: Imperfect Markets a. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. b. If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets? Why? 2. Question: Benefits and Risks of International Business. As an overall review of this chapter, identify possible reasons for growth in international business. Then list the variou...

1. Question: Sources of Supplies and Exposure to Exchange Rate Risk Laguna Co.(a U.S. firm) will be receiving 4 million British pounds in one year. It will need to make a payment of 3 million Polish zloty in one year. It has no other exchange rate risk at this time. However, it needs to buy supplies and can purchase them from Switzerland, Hong Kong, Canada, or Ecuador. Another alternative is that it could also purchase one-fourth of the supplies from each of the four countries mentioned in the p...

FIN 565 Week 8 Final Exam (Version 1) Question: (TCO A) A high home inflation rate relative to other countries would the home country’s current account balance, other things being equal. A high growth in the home income level relative to other countries would the home country’s current account balance, other things being equal. (Points :5) Question: (TCO A) Assume the Canadian dollar is equal to $0.98 and the Brazilian real is equal to $0.28. The value of the Brazilian real in Canadian dol...

FIN 565 Week 3 Homework Solutions Question: Covered Interest Arbitrage Assume the following information: Question: Interest Rate Parity Consider investors who invest in either U.S. or British one-year Treasury bills. Assume zero transaction costs and no taxes. a) If interest rate parity exists, then the return for U.S. investors who use covered interest arbitrage will be the same as the return for U.S. investors who invest in U.S. Treasury bills. Is this statement true or false? If false, co...

FIN-565 Week 2 Homework Solutions Question: Percentage Depreciation Assume the spot rate of the British pound is $1.73. The expected spot rate 1 year from now is assumed to be $1.66. What percentage depreciation does this reflect? Question: Inflation Effects on Exchange Rates Assume that the S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) ...

1.ID: 6
A client is being discharged home after a routine hip replacement surgery. The nurse is instructing the client on how to prevent postoperative complications. What statements by the client would indicate the need for further teaching? Select all that apply. A. “Limiting fiber is necessary to avoid diarrhea.” Correct B. “I should empty my bladder when I feel the urge.” C. “Avoiding pain medication will prevent constipation.” Correct D. “I should drink plenty of li...

1.ID: 6
A client is being discharged home after a routine hip replacement surgery. The nurse is instructing the client on how to prevent postoperative complications. What statements by the client would indicate the need for further teaching? Select all that apply. A. “Limiting fiber is necessary to avoid diarrhea.” Correct B. “I should empty my bladder when I feel the urge.” C. “Avoiding pain medication will prevent constipation.” Correct D. “I should drink plenty of liquids li...

1.ID: 6
A client is being discharged home after a routine hip replacement surgery. The nurse is instructing the client on how to prevent postoperative complications. What statements by the client would indicate the need for further teaching? Select all that apply. A. “Limiting fiber is necessary to avoid diarrhea.” Correct B. “I should empty my bladder when I feel the urge.” C. “Avoiding pain medication will prevent constipation.” Correct D. “I should drink plenty of liquids li...

1. Question: (TCO A) A high home inflation rate relative to other countries would the homecountry'scurrentaccountbalance,otherthingsbeingequal.Ahighgrowthinthehome income level relative to other countries would the home country's current account balance, other things being equal. (Points :5) 2....

FIN 565 Week 8 Final Exam (Collection) version 1 & version 2 100% correct.