Question
1a. If an American Men's skincare product has not entered China, should the product be produced in China? Which region in China is recommended? What
1a. If an American Men's skincare product has not entered China, should the product be produced in China? Which region in China is recommended? What are the advantages of producing in that those location(s)?
1b. The current SPOT PRICE for the Chinese Yuan is 6.52 = $1. What does 180 day forward rate mean? Which country will appreciate and which country will depreciate?
Current 12/10/20 spot price $/: $1 = 6.52
180 day forward rate $/ = 6.7
1c. How and why does hedging through future contracts and purchasing currency swaps reduce translation risk?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
