Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 33 (0,8 points) Suppose an American MNC invests one million dollars ($1000,000) in a project in Spain while the exchange rate was $1.25 for

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 33 (0,8 points) Suppose an American MNC invests one million dollars ($1000,000) in a project in Spain while the exchange rate was $1.25 for each euro. After a year, the Spanish government decides to expropriate all the assets and compensate the American MNC with eight hundred thousand euros only ( 800,000). Assume that the exchange rate has remained unchanged. This is an example of: exchange rate risk. political risk. market imperfections. 1 none of the options, since $100,000 = 80,000 $1.25/1.00. Question 33 (0,8 points) Suppose an American MNC invests one million dollars ($1000,000) in a project in Spain while the exchange rate was $1.25 for each euro. After a year, the Spanish government decides to expropriate all the assets and compensate the American MNC with eight hundred thousand euros only ( 800,000). Assume that the exchange rate has remained unchanged. This is an example of: O exchange rate risk. political risk. market imperfections. none of the options, since $100,000 = 80,000 x $1.25/1.00. Question 33 (0,8 points) Suppose an American MNC invests one million dollars ($1000,000) in a project in Spain while the exchange rate was $1.25 for each euro. After a year, the Spanish government decides to expropriate all the assets and compensate the American MNC with eight hundred thousand euros only ( 800,000). Assume that the exchange rate has remained unchanged. This is an example of: exchange rate risk. political risk. market imperfections. none of the options, since $100,000 = 80,000 x $1.25/1.00. Question 33 (0,8 points) Suppose an American MNC invests one million dollars ($1000,000) in a project in Spain while the exchange rate was $1.25 for each euro. After a year, the Spanish government decides to expropriate all the assets and compensate the American MNC with eight hundred thousand euros only ( 800,000). Assume that the exchange rate has remained unchanged. This is an example of: exchange rate risk. political risk. market imperfections. . none of the options, since $100,000 =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Financial Crisis Implications For Research And Teaching

Authors: Ted Azarmi, Wolfgang Amann

1st Edition

3319205870, 978-3319205878

More Books

Students also viewed these Finance questions