The _____ Era saw the rise of a growing schism between the industrialized and emerging market nations. 22. A ________is any restriction that limits or alters the rate or direction of capital movement into or out of a country. 23. An extreme problem that has emerged several times in international financial history is ______,one of the problems that capital control has designed to control.

Which factor below is causing many of the world's top financial institutions to consider moving their global operations out of London and shift them to other financial capitals within the Eurozone? economic uncertainty high interest rates Brexit high-risk ventures

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What remedy does the IMF recommend to China for controlling the high level of corporate debt? Restructuring companies and reforming corporate governance Reining in the level of borrowing Reducing banking regulation Lowering interest rates

Variation in the price of non-agricultural commodities is determined over time by demand-supply dynamics. The last two decades have seen a significant increase in international trade and business volume due to globalization and liberalization sweeping across the world. This increase has led to rapid and unpredictable variations in financial assets prices, interest rates and exchange rates, and subsequently, to exposing Multi-National Corporations to financial risk. As a result, financial markets have experienced rapid variations in interest and exchange rates and stock market prices, thus exposing the corporate world to a state of growing financial risk. We can hedge the risk of price variations in stocks, bonds, commodities, currencies, interest rates, market indices etc. Given this context, please conduct the necessary research and answer the following questions. Discuss two (2) similarities and two (2) differences between a futures contract and a forward contract. When would the use…

QUESTION ONE In public finance, it no longer suffices for analysts and institutions to focus solely on budget revenues and expenditures. Recent history demonstrates that fiscal performance and, in turn, economic development can be seriously disrupted by the sudden, unexpected costs of hidden contingent liabilities and other unanticipated fiscal risks. During the second half of the 1990s, unreported contingent liabilities and related fiscal risks contributed to economic crises and disrupted growth in a number of developing countries, motivating stepped-up efforts world over to devise new concepts and tools for analyzing and managing public finance. In recent times, Zambia has not been spared. Required: (a) Discuss at least five explicit contingent liabilities that have occurred over the last three decades in Zambia? (b) Discuss at least five implicit contingent liabilities that have occurred over the last three decades in Zambia?  (c) Discuss with justifiable reasons at least five of…

International integration in capital markets: 1. Started with the Bretton Woods agreements but then decreased after 1971. 2. Was prohibited by GATT since 1950. 3. Mainly increased since the 1970s. 4. Decreased up to today from their high levels in the early 1950s. 5. Increased, but only after 2000 and not before O 1 4 5.

The rise of globalization is due to the many companies that have become multinational corporations for various reasons—for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well—for example, political risk and exchange rate risk.   Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. If a government intends to prevent its currency’s value from falling relative to other currencies, it will purchase its currency from sellers in the market. If the demand for a currency increases, the currency’s value will increase relative to other currencies. When a government limits imports and restricts foreign exchange transactions, its currency’s value tends…

The size of a country’s national debt should not be of much economic concern as long as:a. the debt does not lead to rising inflation.b. the debt is funded from international sourcesc. the general population hoards treasury billsd. it increases at a slower rate than GDP does

QUESTION 24 Due to the political and country risks involved in international business, firms should: O A. do business only in countries where they can guarantee their shareholders profit on every project. OB. attempt to assess, measure, and manage risks before investing abroad. OC. do business only in developed countries. O D. All of the above O E. None of the above