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1) Explain how the long-term organizational goal of a firm could be affected when it has engagement of international financial flows. 2) Discuss the sources
1) Explain how the long-term organizational goal of a firm could be affected when it has engagement of international financial flows. 2) Discuss the sources of three different exchange risk exposure faced by multinational banks. Use appropriate examples for each of them. 3) Discuss the incentives for a firm to go for foreign direct investment, with appropriate examples. 4) Differentiate between Forward, Futures, and Options and discuss their advantages, disadvantages, and use-case examples from an MNC's perspective. 5) What tools are available for a frim to hedge Transaction exposure? Discuss with example about how to choose the optimal hedging tool. 6) The following data are obtained from NCC Bank Limited as of 18 November 2019. Buying Rate Currency selling rate 83.85 USD 84.85 107.60 GBP 112.16 91.86 EUR 96.48 0.77 JPY 0.82 Forward 01 month Currency Buying rate Selling rate USD 82.76 86.30 Based on the data how much NCC bank earns from dealing foreign exchange
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