International Finance - 1841 Words

Question 1 a. The dollar is presently weak and is expected to strengthen over time. These expectations affect the tendency of U.S investors to invest in foreign securities because the value of U.S dollar decrease will lead to the U.S company get less profit and earn less money. Consequently, U.S companies will pay fewer dividends for investors who invest in these companies. So, investors will tend to invest in foreign securities where they can get higher dividend. On the other hand, a weak currency can reduce unemployment but maybe it can lead to high inflation, and simultaneously it may reduce U.S imports and boost U.S exports or buy more goods than it sells abroad (imports exceed exports). Another thing, in the long run, trade deficits†¦show more content†¦And when it is expected to strengthen against, owns or earnings from the foreign securities can periodically be converted back to more dollars when they were sold. Question 2: In my opinion, a financial manager of Chapman Co. recommends that it wait until the world stock market recover before it issue stock. He is correct because this is the first time Chapman Co. engage in an initial public offering (IPO). And IPO is very important so it is the first challenge for company to issue stock. Consequently, when Chapman Co. waits until the world stock market recover before it issues stock, this will make Chapman Co.‘s stock price increase according to the world stock marker recover, then, Chapman Co. can gain more profit. Because at the beginning, Chapman Co. issued stock with initial price, and the world market recover will make the Chapman Co.‘s stock price increases more than initial price. Consequently, Chapman Co. gets more profit from IPO and can finance its international expansion. On the other hand, if Chapman Co. follows the other managers to issue stock now even if the world stock market‘s price would low, the Chapman‘s stock price would be low and tend to more decrease according to weak world stock market. So the low stock price at this time will not encourage people to buy. Moreover, the world stock market is still not recovered, the other companies’ stock may also get problems and lead to decrease their stock price. And investors willShow MoreRelatedInternational Finance Exam4417 Words   |  18 PagesInternational finance FIN 412 Exam #2 MC:  Examples of single-currency interest rate swap and cross-currency interest rate swap are:   A.  fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating- rate debt obligations for fixed-rate interest payments of the other counter party B.  fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency forRead MoreSources Of Finance For Synergy International Limited1627 Words   |  7 Pagessources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares although there would be issue costs. Finance, in the wayRead MoreInternational Trade and Finance1501 Words   |  7 PagesLinda Luc Duong International Trade and Finance ECO/372 August 27, 2012 Matthew J. Angner International Trade and Finance When there is a surplus of imports brought into the United States it means that the price of the products will drop. Companies in the United States are competing with the Chinese made products will suffer from price drops on goods. Lower prices on goods will benefit consumers. Large screen Liquid Crystal Display (LCD) and High Definition Television (HDTV) is a good exampleRead MoreInternational finance management7674 Words   |  31 PagesAgency Problems Management Structure of an MNC Why Fimrs Pursue International Business Theory of Comparative Advantage Imperfect Markets Theory Product Cycle Theory How Firms Engage in International Business International Trade Licensing Franchising Joint Ventures Acquisitions of Existing Operations Establishing New Foreign Subsidiaries Summary of Methods Valuation Model for an MNC Domestic Model Valuing International Cash Flows Uncertainty Surrounding an MNCs Cash Flows UncertaintyRead MoreCase: International Trade and Trade Fina nce885 Words   |  4 PagesFITTskills: International Trade Finance Case Study #1: New Modes of Trade Finance Case Study #1: New Modes of Trade Finance Trade finance in the twenty-first century: plug and pay? Palate-Able Delights (PAD) is a niche retailer of high-end food products imported from various parts of the world. Iranian saffron and caviar, French champagnes, Italian truffles and olive oils, vintage balsamic vinegars, fine cheeses, reserve wines from the leading vintners, even limited-availability spring waters†¦ifRead MoreInternational Finance and Economy Essay1225 Words   |  5 Pagesall-time high of 149,713.4 USD Million in November of 2013. The foreign currency reserve for Turkey in December of 2013 was 109,279.75 USD million. Some worry that much of the foreign capital that finances Turkey’s current account deficit is of the flighty sort, which can leave quickly. (International Reserves and Foreign Currency Liquidity – TURKEY) With â€Å"hot money† exiting out of Turkey and their central bank hiking interest rates to try to keep their currency from falling any more, it makes itRead MoreTrade Finance and International Trade1903 Words   |  8 PagesAccording to Branch trade finance has become a strong bargaining point in the conduct of international trade. Negotiating strategy needed to reduce finance risk (Branch, 2005). Trade finance is a topic contained the financial facilities industry. Manufactured goods is sold and distributed to overseas; therefore, it takes longer to get paid. Additional time and energy is required to make sure that buyers are trustworthy and creditworthy. Also, foreign buyers who are just like domestic buyers. TheyRead MoreInternational Trade And Finance ( Bus571 )2452 Words   |  10 PagesNtec Concordia Institute of Business Submitted to: Adrian liew Course: Diploma in Business Management (Level-7) Subject: International trade and finance (BUS571) Submitted By: Amanpreet singh bajaj Student ID:CIB00002YB Assignment: International trade Introduction Quality NZ is a niche supplier of New Zealand’s first quality products and services to the rapidly expanding Indian market, with a specific focus on the food and BeverageRead MoreGlobalization and Its Impact on International Finance6130 Words   |  25 PagesGLOBALIZATION AND ITS IMPACT ON INTERNATIONAL FINANCE CONTENTS 1. Overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...1 2. Introduction to the concept of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 3. Different areas of effect of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 4. International finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance†¦Ã¢â‚¬ ¦....12 ii. Globalization and its impact on developing countries†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreEssay on finance case vanguard international growth830 Words   |  4 Pagesï » ¿ Issues 1. Explain why an individual investor might want to invest in an international growth fund? 2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds, and those risk that would be unique to an international fund. 3. Discuss how the fact that foreign companies are not subject to the same accounting, auditing, and financial reporting standards and practices as U.S. companies poses