13-)

Judy is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is 129.87/$ and the 6-month forward rate is 128.53/$. Judy thinks the yen will move to 128.00/$ in the next six months. If Judy's expectations are correct, then she could profit in the forward market by ________ and then ________.

Select one:

a. There is not enough information to answer this question.

b. buying yen for 128.53/$; selling yen at 128.00/$

c. She could not profit in the forward market.

d. buying yen for 128.00/$; selling yen at 128.53/$

18-)

A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?

Select one:

a. an open marketplace

b. access to qualified labor pool

c. high-quality strategic management

d. access to capital

27-)

If the direct quote for a U.S. investor for British pounds is $1.43/, then the indirect quote for the U.S. investor would be ________ and the direct quote for the British investor would be ________.

Select one:

a. 0.699/$; $1.43/

b. $0.699/; 0.699/$

c. 1.43/; 0.699/$

d. 0.699/$; 0.699/$