Explain how exchange rates may impact the performance of international equity investment.

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: What are five ways in which Zambia can improve unfavourable balance of Trade

A: The objective of the question is to identify five strategies that Zambia can implement to improve…

Q: Consider an economy with zero capital mobility. Will exchange rate overshooting still occur? What…

A: In financial matters, overshooting, otherwise called the swapping scale overshooting speculation, is…

Q: Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker…

A: Balance of trade deficit refers to the situation of excess imports in the country over the exports…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: Discuss the advantages of inward foreign direct investment (FDI) for a source country.

A: A key element of international economic activity is foreign direct investment (FDI), which is the…

Q: small open economy.

A: In a small open economic system, factors which includes interest fees, government guidelines, trade…

Q: If the trade deficit of the United States increases, how is the current account balance affected?

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: Discuss the four main functions of foreign exchange markets for global businesses.

A: Foreign exchange means the process of converting one currency into another, facilitating…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Higher…

A: Imports are the quantity of goods and services purchased by the home country from the foreign…

Q: describe some of the reasons for deviation in exchange power parit

A: Exchange power parity is a method through which changes in the currencies of different countries are…

Q: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

Q: Foreign investment is counted under capital account of balance of payments.  True/False

A: In international macroeconomics the capital account of the balance of payment is account which keeps…

Q: Describe, with detailed explanations, the four components of the current account of the balance of…

A: The current account is used to measure the inflow and outflow of goods, investment incomes, transfer…

Q: Contrast the effects of having a fixed versus a floating exchange rate for a country’s economy

A: Exchange rate are the currency values which are used by the countries for the purpose of imports…

Q: Discuss how government intervention in the foreign exchange market can effect economic conditions of…

A: 1.Government intervention in foreign exchange market. There are 2 types of foreign exchange rate:…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: Discuss exchange rates and their influence on international trade and capital flows.

A: Exchange rates assume a vital part in the worldwide economic landscape, filling in as a critical…

Q: Explain briefly what international investment law does. Why is it important? Is it a good or bad…

A: Investing means putting money into something with the prospect of a future benefit or return. To put…

Q: Which of the following would most likely be included in the positive side of the U.S. current…

A: The question given relates to the balance of payment(BOP) which means systematic record of economic…

Q: Discuss the effect of Purchasing power Parity and Interest Rate Parity on Exchange Rates

A: The exchange rate (XER) refers to the valuation of one currency in terms of another currency. XERs…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: Discuss why a host country might promote or restrict foreign direct investment.

A: Foreign direct investment (FDI) is a kind of cross-border investment in which a stake in and…

Q: Explain how exchange rates are determined in international business

A: Exchange rate refers to the rate at which one country's currency can be exchanged for any other…

Q: if US citizen decides to consume less and save more, then the foreign-exchange price of the dollar…

A: Exchange rate is the rate at which the nation's currencies are exchanged.  And it is determined at…

Q: Compare the effects of monetary and fiscal policies (i.e. strengthened or weakened) to maintain…

A: Before answering the above question, let us first understand some key concepts:  Monetary policy…

Q: Why do you think balance of payments serves as a tool for exportation and importation?

A: The measure that depicts a record of all of the transactions of international trade and also…

Q: List two advantages Chile face by using foreign investment.

A: Chile is one of the emerging countries of the world. It is ranked as 17th largest FDI recipient of…

Q: Suppose for a given country the demand for imports and exports can be expressed as shown below.…

A: Trade balance is the difference between Export and import.  This means Net Export as the Net export…

Q: On what two factors does the return on a foreign investment depend?

A: Foreign investment can be referred as the investment on the asset and domestic firm of another…

Q: The GDP for the United States is $18,036 billion and its current account balance is –$484 billion.…

A: Answer to the question is as follows :

Q: oreign countries start to subsidize investment by instituting an investment tax credit. a) What…

A: A tax credit is an incentive being offered which in turn allows the taxpayers for reducing the tax…

Q: Suppose that a U.S. dollar buys more gold in Australia than it buys in Russia. What does…

A: The question is asking about the implications of the purchasing power parity (PPP) theory in a…

Q: Imports of goods and services is not a source of demand for foreign exchange True/False

A: The requirements for foreign currency to cover the payments is refferd to be as the demand for…

Q: For a small open economy with free capital mobility, an increase in the world real interest rate…

A: The term "capital mobility" describes how easily financial resources, such as cash or investments,…

Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…

A: Introduction  A country devalues ​​its currency to combat a trade imbalance, which means that an…

Q: What are some of the reasons central banks and treasuries enter the foreign exchange markets, and in…

A: A central bank is a financial organization that oversees the monetary policy and controls the money…

Q: Cite ways on how can a multinational corporation minimize its foreign exchange exposure.

A: A multinational corporation is a business unit that has its branches all over the world in different…