### Foreign exchange markets over the next year

Assignment Help Finance Basics
##### Reference no: EM131388414

1. If the world had stable foreign exchange rates, your text on international finance would be a much thinner book. Because we live in a world of often rapidly fluctuating exchange rates, one of the core issues of international finance is studying ways the international firm can minimize its risk from exchange rate losses in its international transactions, its international investments and in its repatriation of overseas profits.Through the study of the materials in this course, you will learn many sophisticated techniques for minimizing risk. The following question is designed to get you thinking about the topic.

You are the CFO of a U.S. firm with a wholly owned subsidiary in Mexico that manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. You have just been told by one of your analysts that the Mexican peso is expected to depreciate by 30% against the U.S. dollar on the foreign exchange markets over the next year.

What actions, if any, should you take?

2. Choose a country and show the U.S. exports to that country and imports from that country for the last 10 years. Note any changes and discuss the reasons for the changes.

#### Determine the single greatest challenge to a small business

Determine the single greatest challenge to a small business' working capital. Identify at least two (2) methods this small business could use to address the identified chall

#### Determine the total return for the specific year

Your stock portfolio had the following returns in the four quarters of a given year: +8%, -5%, +6%, +4%. How did it compare against the benchmark index, which had total ret

#### Values of bonds for given interest rates

What would be the value of this bond if interest rates fall to 5% the day after it is purchased? If interest rates fell to 5% after one year, what would the bond be worth at

#### What are annual credit sales

Vang, Inc., has an average collection period of 27 days. It's average daily investment in receivables is \$86,000. What is the receivables turnover? What are annual credit sa

#### Calculate the debt ratio and time interest earned

Laurel Street, president of Uvalde Manufacturing Corporation is planning a proposal to present to her board of directors regarding a planned plant expansion that will expense

#### Distinguish between the front office and the back office

Explain why it is important to keep the front and back offices separate ? Explain why the traditional auditing function cannot serve as the risk management function ? Why is

#### How many barrels of crude 1 should be purified

Before blending the crude oil into gas, any amount of each crude can be "purified" at a cost of \$3.50 per barrel. This purification eliminates half of the impurities in the

#### Grow at a constant rate

Harrison Clothiers' stock currently sells for \$17 a share. It just paid a dividend of \$3.5 a share ( that is, D - 3.5). The dividend is expected to grow at a constant rate o