30.
Choose the most accurate statement that explains why the International Marketer is interested in the data reported in the Balance of Payments (BoP):
Question 32 options:
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
According to my analysis, all the given statements are right. So, option f is the correct option.
Option F: All of the above statement provide an important information that will help International Marketer's decisions.
Step by stepSolved in 2 steps
- Please help with a discussion on question #2. The base country is Nevis and the countries trading to is Australia, Columbia and Germany. Explain why would it be more profitable to trade in USD rather than XCD and how can the MNC benifit from the trading countries currencies. Use an echange rate table or chart to help strenghten your point You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, is the exportation of a product soldthrough a distributor2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that…arrow_forwardUses of the foreign exchange market include all but: Question 70Answer a. Selling currency for a profit b. Speculative investments c. Currency devaluation d. Currency hedgingarrow_forwardRefer to the image below 1. How was the structure of the foreign exchange market works.? Give an example on each structure.arrow_forward
- Which of the following is true about the IMF and World Bank? a. More than 190 countries participate as members of the IMF. b. They aid in dollarizing the economies of foreign nations. c. The IMF lends money to all types of countries, including advanced, emerging, and developing economies. d. The IMF provides loaner currency to countries experiencing hardship. Which of the following payment types offers payment protection to both exporters and importers, as the importer’s bank writes a guarantee of payment? a. A commercial letter of credit b. Payment in advance c. A syndicate d. A banker’s acceptance The supply chains of global businesses such as Boeing, Ford, United Airlines, and the pharmaceutical companies Merck and Pfizer are known as which type of supply chain? a. Enterprise b. Telecommunication c. Global d.…arrow_forwardFor every part of this question, assume the reasonable national goals of long term economic growth and business cycle stabilization: a) Discuss a few of the benefits of using the West African franc (WAF). How do these advantages overcome other problems (that occur elsewhere in Africa), where the WAF is not used. b)The WAF currency board is based in Dakar, Senegal. What actions must be taken by the currency board, to guarantee the benefits, discussed in part A? Why is any cheating by the currency board impossible? c) All governments must make tradeoffs. As a result, some people will disagree with their own government. What are some of the identifiable disadvantages of using the WAF? How do these problems occur?arrow_forwardAssume that the export price of a Sony Smartphone from Nagoya, Japan is ¥15,000. The exchange rate is ¥87.60/S. The forecast rate of inflation in the United States is 2.2% year and is 1,5% per year in Japan. Use this data to answer the following questions on exchange rate pass through. a. What was the export price for the Sony Smartphone at the beginning of the year expressed in U.S. dollars? per b. Assuming purchasing power parity holds, what should the exchange rate be at the end of the year? c. Assuming 100% pass-through of exchange rate, what will the dollar price of a Sony Smartphone be at the end of the year? SFS oi oninnigsh 001 X d. Assuming 80% pass-through, what will the dollar price of a Sony Smartphone be at the end of the year?arrow_forward
- When prices of different currencies move up and down grounded on the demand for the supply of each currency, how is this activity referred to? Question 3 options: a) Floating exchange rates b) Dumping c) Counter trade d) Price appreciationarrow_forwardDistinguish Exchange Rate Method and Purchasing Power Parity as 1. methods of comparing Country GDP 2. identify certain limitations of each approach. Cite examplesarrow_forwardWhich of the following is NOT a main use of foreign exchange markets: a. Currency Arbitrage b. Currency Ledging c. Currency Speculation d. Currency Conversionarrow_forward
- 9. The process of buying a currency low and selling it high in different markets is known as A. Currency Swap B. Spot exchange rate C. Pegged exchanged rate D. None of the Abovearrow_forwardQuestions - answer both 1 and 2 Reserve CurrenciesA. Which currencies does the IMF currently designate as "reserve currencies”?B. What is meant by "reserve currency" and why are reserve currencies important?C. Identify and explain two advantages related to international trade or the US economy, that the US has because the dollar is a reserve currency. D. Identify and explain one disadvantage related to international trade or the US economy, that the US has because the dollar is a reserve currency. The EuroA. How many countries are members of the European Union? (Since the EU is changing and growing, the textbook could be out of date. Be sure to find the current number of countries.)B. Currently, how many of those European Union members have adopted the euro as their currency? (Be sure your answer reflects current data. The textbook may be out of date.)C. Identify and explain two benefits that the Eurozone brings to its businesses and consumers. D. Identify and explain one…arrow_forward15.Almost all of the European Union countriesuse the Euro as their common currency. Doesthis help or hinder international ISs? Does it fosterthe use of information systems and the web?Explain.arrow_forward
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning