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Explain the International Fisher effect and Interest Rate Parity theories. If these theories exist, explain. MNCS' justification to invest excess cash in a foreign country.

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Explain the International Fisher effect and Interest Rate Parity theories. If these theories exist, explain. MNCS' justification to invest excess cash in a foreign country. Present a situation in which investment in the foreign money market would provide a higher rate of return than the one offered at the home market. [10 marks]. SHAHR E

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