Question
1) What's the purpose of trade agreements such as NAFTA, CAFTA, and the Mercosur free-trade zone? 2) What are the various methods by which firms
1) What's the purpose of trade agreements such as NAFTA, CAFTA, and the Mercosur free-trade zone?
2) What are the various methods by which firms expand into international markets?
3) What are two strategies multinational corporations use when manufacturing products, and why do they use them?
4) What do arbitrageurs (those who engage in arbitrage) look for when seeking out a profitable currency trade?
5) How do financial managers implement hedging strategies to reduce exchange rate risks?
6) What does the concept of interest rate parity suggest?
7) What factors may prevent the concept of purchasing power parity from exactly reflecting the law of one price?
8) What are some political risks that pertain to the assets and cash flows of multinational corporations?
9) How can a company minimize the impact of political risk?
10) What type of discount rate should be used when analyzing foreign projects and why?
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