Explain factors that could cause countrys currency to weaken

Assignment Help Corporate Finance
Reference no: EM131392303

International Business Assignment

Part 1:

Your company is deciding to expand to the following countries, and you and two other managers will have to visit these countries to set up operations. You have $1,500.00 to convert in each currency. Compute the exchange amount for each, and complete the table.

Country/Currency

USD value for 1 unit of another currency (as of 2/17/16)

Exchange amount

Japanese yen

$0.008754

?

Euro

$1.1159

British pound

$1.4398

£

While you are visiting each of these countries, you have to buy supplies and equipment for your operations. You want to determine what it is costing you in U.S. dollars. Utilizing the same exchange rates given above, compute the costs into U.S. dollars, and complete the table:

Japanese yen

Computer ?167,000.00

$

Euro

Desks & chairs €1,125.00

$

British pound

Printer £575.00

$

Part 2:

Pedro in Costa Rica wants to purchase some wild Atlantic salmon from Hans in Iceland. The fish are purchased in Iceland's currency, the krona. Pedro's brother works in a bank and will take care of the transactions free of charge. Pedro has 1,000,000 colons to start with. (There is no transaction fee, and shipping is not calculated at this point.)

How much krona does he have to work with?

Country/Currency

USD $ value for 1 unit of another currency (as of 2/17/16)

Euro € value for 1 unit of another currency (as of 2/18)

Costa Rica colon CRC

$0.001909

€0.001745

Iceland krona ISK

$0.00788

€0.007062

The next day Hans decides to purchase some bananas from his new trading partner in Costa Rica. Han's sister works for an import/export agency and can arrange the transaction in euros with no fee. Hans takes all of the krona he received from Pedro and proceeds to convert his currency to colon. (Note, one country's currency experienced some weakness overnight.)

How much colon does he have to work with? List your steps and the results you achieved with each step. Also, explain some factors that could cause the country's currency to weaken.

Reference no: EM131392303

Questions Cloud

Finance department regarding the inability : You are the CEO of Post Corporation and you have just received the report from the Finance department regarding the inability of the company to pay off its debt.
Define and compare measures of variation range st dev : Define and compare measures of variation (range, St. Dev.). Discuss about the shape of distribution and then compare positive and negative skewed.
Determine for a speed of 800 rpm : Solve Prob. 19.168, assuming that a dashpot of constant c = 6500 N . s/m is introduced between the motor and the ground.
Supply chain management at wal-mart : Key Issue: Supply Chain Management at Warl-Mart and its impact on Wal-Mart's overall performance. Study Questions:
Explain factors that could cause countrys currency to weaken : MBA 6601- How much colon does he have to work with? List your steps and the results you achieved with each step. Also, explain some factors that could cause the country's currency to weaken.
Control the output flow rate : Control the output flow rate at Qsp. Complete the diagram showing the control loops by using the block diagram error-detector symbols and controller blocks. Include blocks for necessary signal converters.
Slp managing individual behavior : The SLP for this course involves making a personal assessment of a relevant set of skills, focusing on your strengths and identifying any weaknesses that may have been revealed. You will then be asked to create a plan by which you can "grow" your ..
The detriment of social welfare : Appraise this statement: In equilibrium, a monopsonistic hospital will hire fewer nurses at lower wages than would a hospital in a more competitive market, to the detriment of social welfare.
A favorable budget variance is defined as a : A budget variance is A. A favorable budget variance is defined as A.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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