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Answer the question in details please Scenario 3. Let's assume that Nigeria and the US are engaged in cross-border trade and investment activities. Nigeria imports

Answer the question in details please
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Scenario 3. Let's assume that Nigeria and the US are engaged in cross-border trade and investment activities. Nigeria imports computers from the US while the US imports crude oil from Nigeria. Assume that the inflation rate in the home country (US) is 5 percent while it is 3 percent in the host country, Nigeria. Required: Determine the percentage by which the Naira (Nigerian currency) will have to appreciate in order to restore equilibrium in the Consumer Price Index (CPI) in both home and host countries. Scenario 4. Carlex, a US multinational company (MNC) has decided to borrow Indian rupees for one year to meet is working capital needs. The prevailing interest rate in India is 8 percent. Carlex has developed the below probability distribution for the rupee's degree of volatility against the dollar: Possible degree of volatility of rupee against dollar .00/0 0030/0 Required: Probability .20 .30 .10 .40 Given the above information, determine the expected value of the effective financing rate for the rupee from the perspective of Carlex.

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