Do you agree with the following claim? “U.S. companies with global operations can give you international diversification.” Think about both business risk and foreign exchange risk.

Q: What is globalization? What modes of international business are used by firms that want to…

A: Note: As per our guidelines, we can only answer one question at once. Please post other questions…

Q: fina

A: The impact of bank competition on financial markets and firms is an important topic of concern for…

Q: Increased global interaction has been promoted by advanced technology in communication, ideas and…

A:

Q: Discuss risk mitigation strategies for foreign financial statement analysis.

A: FS analysis is a subset of business analysis that entails assessing a company's business…

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: interest rate parity says that EQUILIBRIUM is achieve by change in interest and change in interest…

Q: Suppose a U.S. firm builds a factory in China, staffs it with Chinese workers, uses materials…

A: Exchange rate risks are the risks associated with changes in interest rates.

Q: Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better…

A: Following are the reason for US firms operating in foreign markets-

Q: Direct foreign investment into the United States represents a ____.     capital outflow…

A: Cashflow means movement of cash. This movement can be positive or negative. Positive movement means…

Q: One major risk of engaging in global trade is that as national economies continue to integrate, an…

A: Global trade is one of the important type of business, which can be engaged for generating finance…

Q: How can the Greater Liberalizations and removal of barrier to trade can stimulate FDI that can…

A: FDI is very important for the growth of business and growth of economy of the nation and FDI is very…

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: The conceptual formula used:

Q: Explain the role of private multinational corporations (MNCs) in foreign direct investment in…

A: Multinational companies want to grow internationally So they always look for growth.

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: Relative interest rate constitute as one of the major factors in determining the exchange rates. For…

Q: Advantages of going global for U.S. banks include all but which one of the follow Greater…

A: The term going global refers to better opportunities, new markets and as a result additional revenue…

Q: How to manage cultural risks and other factors related to a foreign operation of a multinational…

A: The most ideal approach to oversee cultural risks is to receive a receptive outlook and grasp the…

Q: To minimize exposure to political risk, a multinational firm may establish a joint venture with a…

A: A political risk arises out of the instability of a foreign government and its policies. To assess…

Q: Which of the following factors are likely to decrease the weighted average cost of capital for a…

A: Weighted average cost of capital is the required rate of return which investors would expect from…

Q: With more businesses operating internationally, there is potential for these businesses to seeking…

A: Answer: Auditing standards are the set of rules that the auditor needs to follow while auditing…

Q: True or false, and explain: It is risky to operate multinationally, so it is not always wise to…

A: The above statement is false, it is risk to operate multinational but when the proper measures are…

Q: What are the financial issues, export practicalities and technicalities that an exporter would need…

A: When forming the export strategy there is need to consider the important financial policies which…

Q: From your course of study, you can see that the U.S. dollar and the Euro are the largest functional…

A: IN this question, we will explain about another popular functional currency after  U.S. dollar and…

Q: Supposed a company plans to expand its business abroad, what are the risks it might encounter?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: How do you think the international equity market might benefit Malaysian firms? Is there any…

A: An equity market is a market in which company shares are issued and exchanged, either on exchanges…

Q: Evaluate a home country’s multinational corporations as a tool for international diversification.

A: Multinational which originated in home country that means they have stock listed at home and they…

Q: problems

A: INTRODUCTION Political risk is the risk an investment's returns could suffer as a result of…

Q: Which factor below is causing many of the world's top financial institutions to consider movin their…

A: Several financial institutions are considering moving their global operations out of London and…

Q: Identify an economic crisis or turning point that had significant impacts to certain industries in…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and…

A:

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.