Why would a developing country decide to liberalise its equity market?

Q: 1. Should international companies invest in countries with totalitarian regimes? Why?

A: Totalitarian regimes: It is a form of government which is not democratic and restricts the…

Q: why is political stability is one of the factor of foreign exchange market

A: The foreign exchange market, also known as the forex market or FX market, is a decentralized market…

Q: What is meant by Foreign Exchange Markets?

A:

Q: How does financial innovation help economic growth?

A: Financial innovation- It is a process of creation of new financial instrument, products, services…

Q: How can a foreign exchange crisis lead to a banking crisis in emerging market countries?

A: Foreign Exchange is trading of one currency for another. Banking is an industry that handles…

Q: Increasing a country's risk-free rate could _______ the cost of equity to an MNC in that country;…

A: The theoretical return on a risk-free investment is known as the risk-free rate of return. Over a…

Q: How can we measure whether short-term international capital markets are fully integrated or not?…

A: Measuring the integration of short-term international capital markets is a complex task that…

Q: How does the Fed stimulate the economy? How does the Fed affect interest rates?

A: The Fed refers to the Federal Reserve’s of the country which is used by the country to maintain…

Q: How does an investor earn in the foreign exchange market?

A: The foreign exchange market comes into exitance where currencies of different countries can be…

Q: How does Haier’s internationalization strategy differ from the pattern of international development…

A: (Harvard Business Review, 2018). According to Zhang's 'Zero Distance' policy, everyone in the…

Q: Consider risk mitigation strategies while analyzing foreign financial statements

A: Subclass of business analysis, FS analysis evaluates a company's business environment, strategy,…

Q: Does Arbitrage destabilize foreign exchange markets? Support your logic about that statement

A: Solution- F = S*1+if/1+id  F= Forward Exchange Rate  S= Current Spot Exchange Rate  Id= Interest…

Q: Who are the players in the foreign exchange market?

A: The currency market, often known as the foreign exchange market, is a global decentralized or…

Q: How can a firm make a direct foreign investment?

A: Step 1 A foreign direct investment (FDI) is a financial investment made by a company or individual…

Q: What are the criteria for selecting between hedging or diversification to manage risk in the foreign…

A: Hedging This is  said to be the risk management strategy which is used by  individuals and companies…

Q: Why when the US Federal Reserve raises interest rates, some countries raise interest rates as well?…

A: The monetary payment for the privilege of borrowing money is known as interest, and it is often…

Q: How foreign currency risk can affect the value of a multinational company?

A: Foreign currency risk is the risk due to change in the value of domestic currency with respect to…

Q: Why do we need a foreign exchange ma

A: Foreign exchange market is where one can buy and sell currencies of other countries and convert…

Q: What are the advantages and disadvantages of foreign investing?

A: Foreign investing refers to the practice of investing in companies, assets, or markets outside of…

Q: Has the development of the Eurodollar market made it easier ormore difficult for the Federal Reserve…

A: Eurodollars are held on to the interest-bearing account. The interest that is paid on these deposits…

Q: Which of the following is not one of the pillars of Macroeconomic policies of the Government? a.…

A: Answer The key pillars of macroeconomic policy are: fiscal policy, monetary policy and exchange rate…

Q: what are the advantages and drawbacks for digital Technology: How It Could Transform the…

A: Digital technology is referred as an usage of an advanced communication as well as information…

Q: How does the interest rate parity condition Maintain equilibrium in the foreign exchange Market?

A: The question asks how the interest rate parity (IRP) condition helps keep the foreign exchange…

Q: critically discuss the rationale behind the introduction of negative interest rate policies (NIRPs)…

A: Negative interest rate policy (NIRP) is an a monetary policy tool employed by a central bank.Under…

Q: Why are efficient capital markets necessary for economic growth?

A: Capital Markets are the markets that accelerate the transactions of securities with specified term…

Q: What has been the role of IMF loans in international affairs addresing financial crisis? Why are…

A: International Monetary Fund or IMF is defined as an organization, which includes 190 countries as a…

Q: how interest rate impact the foreign exchange market? how foreign exchange market impacts interest…

A: Interest rates and the foreign exchange market are closely related, and changes in one can have a…

Q: How do global economic growth trends impact interest rate parity?

A: Interest rate parity (IRP)  Interest rate parity (IRP) is all about balancing returns across…

Q: What is Dunning's OLI framework and how does it help us to understand foreign direct investment ?

A: A financial investment made by the individual or company from one nation into a company of another…

Q: Do you think some investors may take advantage of the interest rate reduction, despite economic…

A: Investors deals in various investment options like derivatives instruments that require margin money…

Q: How do you relate development of global value chains in global economy and the causes of 2008…

A: The question is based on the concept global value chain and its role in crisis of 2008-09.

Q: What are the sources of foreign financing?

A: Foreign financing means capital or funds that are sourced from outside a country's borders to…

Q: What is the Eurodollar market? Discuss the reasons with respect to the rapid expansion of the…

A: The Eurodollar market is a segment of the financial market in which Eurodollar currency, US dollars…

Q: What open market actions would the Fed take to contract the economy?  Explain how this happens?

A: There are mainly three tools of monetary policies that are used by the federal banks to contract or…

Q: What is the effect on a country’s economy of an artificially lowexchange rate? Of an artificially…

A: An exchange rate is the money of one country versus another country's or economic zone's currency.

International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.