Assume that the one-year interest rate in the U.S. is 7% and in the U.K. is 5 %. According to the international Fisher effect (IFE): British pound's spot exchange rate should depreciate by 1.9% British pound's spot exchange rate should appreciate by 1.9 % British inflation rate should decrease by 1.9% British pound's spot exchange rate should remain unchanged. Question 11 (4 points) Assume that an American firm wants to engage in international business without major investment in the foreign country. Which method is most appropriate in this situation? International Trade Joint Venture Acquisitions of existing operations Establishing new foreign subsidiaries