14. International Markets What is the function the reasons for the development and growth of the European money market. Explain how the interna. tional money, credit, and bond markets differ from one another 15. Evolution of Floating Rates Briefly describe the historical developments that led to floating exchange rates as of 1973. 16. Greece Credit Crisis Explain why the Greece credit crisis can cause contagion effects throughout Europe. 17. Eurocredit Loans a. With regard to Eurocredit loans, who are the borrowers? b. Why would a bank desire to participate in syndi- cated Eurocredit loans? c. What is LIBOR, and how is it used in the Euro- credit market? 18. Foreign Exchange You just came back from Canada, where the Canadian dollar was worth $.70. You still have C$200 from your trip and could exchange them for dollars at the airport, but the air- port foreign exchange desk will only buy them for $.60. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for $.10 per peso. You met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$200 for 1,300 pesos. Should you accept the offer or cash the Cana- dian dollars in at the airport? Explain. 19. Foreign Stock Markets Explain why firms may issue stock in foreign markets. Why might U.S. firms issue more stock in Europe since the conversion to the euro in 1999? 20. Financing with Stock Chapman Co. is a pri- vately owned MNC in the United States that plans to engage in an initial public offering (IPO) of stock so that it can finance its international expansion. At the present time, world stock market conditions are weak but are expected to improve. The U.S. market tends to be weak in periods when the other st markets around the world are weak. A financial man ager of Chapman Co. recommends that it wait u world stock markets recover before it issues stock stock