Expect depreciation of the currencies against the dollar

Assignment Help Business Economics
Reference no: EM131007402

Currencies of some Latin American countries frequently weaken against most other currencies. What concept in this chapter accounts for this occurrence? Why don’t all U.S.-based MNCs use forward contracts to hedge their future remittances of funds from Latin American countries to the U.S. even if they expect depreciation of the currencies against the dollar?

Reference no: EM131007402

Questions Cloud

The economy to the full employment level : To apply supply side economics, given that only 40% of the tax credits given to businesses are reinvested, how much tax credit do investors need to move the economy to the full employment level? You should assume that consumption and government spend..
The contract called for cash settlement of the net interest : Prepare the journal entries through June 30, 2011, to record the investment in notes, interest, and necessary adjustments for changes in fair value.
Annual maintenance costs-what is the capitalized cost : The original cost of a certain asset is $1,592. Annual maintenance costs are projected to be $464, with periodic maintenance costs of 983 every 10 years, over an indefinite period of time. The interest rate is 2%. What is the capitalized cost?
Annual revenues and expenses are expected : The original cost of a certain asset is $1,180. It has to be replaced (at this cost) every 4 years; the salvage value is negligible. Annual revenues and expenses are expected to be $435 and $366, respectively, over an indefinite period of time. The i..
Expect depreciation of the currencies against the dollar : Currencies of some Latin American countries frequently weaken against most other currencies. What concept in this chapter accounts for this occurrence? Why don’t all U.S.-based MNCs use forward contracts to hedge their future remittances of funds fro..
Difference in inflation rates among industrialized nations : The difference in inflation rates among industrialized nations is often only a few percentage points. Nevertheless, annual exchange rates among currencies of industrialized nations have changed by more than 10% in some years. Evaluate what this sugge..
Write the budget equation that kingsley faces : Write the budget equation that Kingsley faces. Sketch the graph of Kingsley’s budget line for goods X and Y. Write the equation of the budget line in slope-intercept form. Identify the slope. Find the marginal utility for goods 1 and 2.Determine the ..
Record the interest and necessary adjustments : Prepare the journal entries on June 30, 2011, to record the interest and necessary adjustments for changes in fair value.
Provided pension plans or health insurance coverage : Suppose that the government adopts a Haig-Simons comprehensive income definition. Will this make employers more likely or less likely to offer employer-provided pension plans or health insurance coverage? Why?

Reviews

Write a Review

Business Economics Questions & Answers

  Q1 which of the following is not a possible explanation as

q1. which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40

  About the retirement planning

For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annually, compounded monthly?

  Role of risk and return in the pharmaceutical industry

Discuss the role of risk and return in the pharmaceutical industry. In the U.S. health expenditures on drugs amount to about 10% of total health expenditures. In Japan, where physicians are legally permitted to sell pharmaceuticals, national expendit..

  Price go before it is preferred to shut down

Assume a company has $200 in fixed costs, marginal costs are $10, and the company produces 100 units per year. How low can the price go before it is preferred to shut down? Answer the question for the short run and for the long run

  Draw the intertemporal budget constraint

Draw the intertemporal budget constraint. Be sure to label the axes, endowment point and the absolute value of the slope. Suppose that the individual’s interest income is taxed at 25% in both periods, and that interest payments are deductible at 25%...

  How to compute implicit explcit and opportunity costs.

how to compute implicit explcit and opportunity costs. jamal has a flexible job. he can work everyday but is allowed to take a day off anytime he wants.

  Simulation function in simetar for the random

Generate a PDF and CDF using the simulation function in simetar for the random variable X that follows a normal distribution with a mean of 20 and a standard deviation of 4. Remember that simetar uses the standard deviation to produce the distributio..

  What are the optimality conditions and choice variables

Elle's prefrences over apples(A) and bananas(B) are represented by the Cobb-Douglas utility function; U(A,B) = AB. Write down the optimization problem. What is the objective function? What are the choice variables? What is the constraint? What are th..

  If the macro economy is initially in long-run equilibrium

Suppose that the long-run aggregate supply curve (potential output, Y is vertical at Y = $3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (and once again, P = 1.0 is the SRAS Curve, in other words). If the macro economy is i..

  Find the single-plant profit-maximizing level of output

Electron Control, Inc., a manufacturer of voltage regulators for industrial power generators, currently consolidates production at a single plant in Chattanooga, Tennessee, but a multiplant alternative to centralized production is being considered. F..

  Soviet union and of the international political system

Detail the collapse of the Soviet Union and of the international political system. Describe the dilemmas faced by international political relations scholars at that time as a result of these collapses. How this impact foreign policy did at that time,..

  Future business conditions and invest in capital equipment

Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Show the short-run effect of this optimism on the aggregate-demand curve. Which of the following reasons could explain why the aggregat..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd