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How can the Greater Liberalizations and removal of barrier to trade can stimulate FDI that can incentivise firms to invest overseas
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- What do you know about arbitrage opportunity? Discuss with examples. Also, present a scenario of any type of international arbitrage if possible. If so, how would it be executed and how would market forces be affected? Does arbitrage opportunity destabilize foreign exchange markets?Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better economic and political environment (in the U.S.) B.Less expensive labor C.Tax incentives D. To achieve international diversificationExplain how multinational companies can reduce the foreign currency risk by hedging.
- An international project can reduce a firms overall risk as a result of international diversification benefits.” Evaluate the statement.How do think multinational companies will help to eliminate the built-in issue of dependency in the globalization of business?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.
- How can a firm make a direct foreign investment?How does Haier’s internationalization strategy differ from the pattern of international development typical of Western enterprises?In theory, the arbitrage opportunity does not exist. However, with the new technologies and increased globalization, could arbitrage opportunity exist in some new ways?
- How foreign currency risk can affect the value of a multinational company?How has money laundering affected internatioal trade? Answer should discuss this effect between developed and emerging economies. Use current article to support answer.What is the difference between technology risk and operational risk? How does internationalizing the payments system among banks increase operational risk