Explicates how a local industry can utilize a lc loan

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Q. Even though Japanese banks faced a Japan Premium, profitability in their offshore operations was not impaired as the Japanese banks were able to pass these costs along to their customers banks in the local marketplace are not frozen so which a industry still has access to lending from its local bank in local currency (LC) terms. Using the principles of covered interest parity, a. Explicates how a local industry can utilize a LC loan to synthetically create a 1-yr USD loan. b

Reference no: EM1344274

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