1. Discuss some of the pros and cons of countertrade from the countrys perspective and the firms perspective. (15mark)(You may discuss positive and negative incentives/reasons to a country and corporation in favors of countertrade. Thereafter, you may discuss reasons why country and corporation against countertrade. )

b. Banks find the necessary to accommodate their clients needs to buy or sell FX forward, in many instances for hedging purposes. Discuss ways the bank eliminated the currency exposure it has created for itself by accommodating a clients forward transaction. (10mark) (

Discuss how bank use swap transactions eliminates the currency exposure in accommodating clients forward transactions. 5 points with explanation each.

For question 4, you may refer to Unit 5 course notes and google for more information)

b.