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- How to avoid rogue trading? What are the consequences of rougue trading?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?In international finance, can you explain the risk involve for both importer and exporter and provide one example how these two parties experience the pros and cons.
- What is currency risk with practical example ?Which of the following risk responses would be most likely to be given consideration for an organization which is a trade importer and exporter? a. Reduce risk b. Avoid risk c. Share risk d. Accept riskWhat is the difference between technology risk and operational risk? How does internationalizing the payments system among banks increase operational risk
- An exporter is trying to reduce transaction exposure in the face of a depreciating foreign currency, which of the following strategies would be best? A) Paying or collecting early B) Paying or collecting late C) Paying bate, collecting early. D) Paying early, collecting lateunder what circumstances can how an international company can use 'leads and lags' to protect itself against foreign exchange risk.The probability of losing investment in a foreign country is known as: O confiscation O political risk expropriation custom duty
