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Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of items; clothes, gifts,

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Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of items; clothes, gifts, toys, electrical goods, etc.) if there were an unexpected downward movement in the UK that was expected to last for some years. The department store has 80% of its stores in the UK and 20% of its stores in France An American company decide to invest $ 250 m in Jordan the current EXR is 0.75$/) the project start in 3 months for 6 months 3 month rate j =2% $= 3% 9 month rate j=4% $=5% 12 month j=6% $=7% Answer the following question 1. Which currency depreciate / appreciate 2. How many swop point 3. What is the American company loss/profit in the Jordanian market 4. Suppose that on settlement date the rate in Jordan is 3.5% and the rate in US market is 5% the swop differences is 25 points A) Explain what happen B) What would be the outcome for the American company Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of items; clothes, gifts, toys, electrical goods, etc.) if there were an unexpected downward movement in the UK that was expected to last for some years. The department store has 80% of its stores in the UK and 20% of its stores in France An American company decide to invest $ 250 m in Jordan the current EXR is 0.75$/) the project start in 3 months for 6 months 3 month rate j =2% $= 3% 9 month rate j=4% $=5% 12 month j=6% $=7% Answer the following question 1. Which currency depreciate / appreciate 2. How many swop point 3. What is the American company loss/profit in the Jordanian market 4. Suppose that on settlement date the rate in Jordan is 3.5% and the rate in US market is 5% the swop differences is 25 points A) Explain what happen B) What would be the outcome for the American company

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