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7. Suppose there is a US BOP current account surplus with Japan. How would the foreign exchange market and the international trade market react to
7. Suppose there is a US BOP current account surplus with Japan. How would the foreign exchange market and the international trade market react to this situation? What would be the result? 8. You are advising a US company that is considering building a manufacturing plant in China. The budget is expected to be over $4.5 billion. The company is concerned that the NPV will be low and the IRR will be below the cost of capital. How would you advise the company to reduce expenses? What would be the effect on NPV and IRR
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