88.
A U.S. firm is expecting cash flows of 20 million Mexican pesos and 35 million Indian
rupees. The current spot exchange rates are: $1 = 11.792 pesos and $1 = 49.204 rupees. If
these cash flows are not received for one year and the expected spot rates at that time
will be $1 = 11.118 pesos and $1 = 41.075 rupees, then what is the difference in dollars
received that was caused by the delay?
89.
A U.S. firm is expecting to pay cash flows of 15 million Egyptian pounds and 25 million
Qatar rials. The current spot exchange rates are: $1 = 5.25 pounds and $1 = 3.75 rials. If
these cash flows are delayed one year and the expected spot rates at that time will be $1
= 5.62 pounds and $1 = 4.00 rials, then what is the difference in dollars paid that was
caused by the delay?
90.
The U.S. dollar spot exchange rate with the Canadian dollar is $1 = CA$1.12. The U.S.
dollar and Swiss franc exchange rate is $1 = 1.275. If the cross-rate between the franc
and Canadian dollar is 1 franc = CA$0.9750, which of the following statements is correct?
91.
An exchange rate regime where the country’s central bank allows its currency price to float
freely between an upper and lower bound and may buy or sell large amounts of it in order
to provide price support or resistance is referred to as:
92.
All of the following are political risks to the assets and cash flows of multinational
corporations EXCEPT:
93.
All of the following are ways that a multinational corporation can minimize the impact of
political risk EXCEPT:
94.
The concept of interest parity describes:
95.
If gold is selling in the U.S. for $1,015 per ounce and if 1 peso = $0.35, then gold should
sell for _________ in Mexico.
96.
If the law of one price does not hold, then:
97.
China’s exchange rate is a:
98.
China’s exchange rate is pegged to the:
99.
Arbitrage profit can be made by:
100.
When Starbucks opens a location in Mexico City, this is an example of:
101.
All of the following are ways to conduct international business EXCEPT:
102.
All of the following are examples of factors that affect trading activity between countries
EXCEPT:
103.
A golf club costs $100 in the United States. The same club costs AU$129 in Australia.
Assume that purchasing power parity holds. What is the exchange rate between the U.S.
and Australian dollars?
104.
A golf club costs $112 in the United States. The same club costs AU$78 in Australia.
Assume that purchasing power parity holds. What is the exchange rate between the U.S.
and Australian dollars?
105.
A large amount of foreign direct investment into a country will most likely result in:
106.
Risks inherent in making investments in foreign countries include:
107.
Tools that multinationals can use to help them reduce the risks inherent in making
investments in foreign countries include: