Tom Hason International Business Assingment Help With Solution
1. (5 points) The table below gives information on foreign trade for a country.
a. Using the initial information, what is the country’s trade deficit?
b. If the government undertakes policies to depreciate the currency 18%, what will be
the immediate effect on the trade balance?
c. After the pass-through period (when the quantity has fully adjusted to the new
numbers given below and the exchange rates are still at the new rate), what will the
trade balance be?
Initial spot rate 2.30
Average export price 17.50
Average import price 12.00
Export quantity 230
Import quantity 190
New export quantity 360
New import quantity 145
2. (5 points) You observe the following three exchange rates at which you can buy or sell
(borrow or lend). Calculate your total profit from triangular arbitrage, reporting your total
profit in $ (by first calculating the profit in British pounds and then converting).
Wells Fargo ¥80.00/£
3. (5 points) You are working as a corporate treasurer and observe the following two exchange
rates. Calculate, using $1 million how you could make an arbitrage (risk-free) profit.
Citibank NYC $0.9655 – 65/€
Barclays London $0.9648 – 51/
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id firstname.lastname@example.org with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id email@example.com and firstname.lastname@example.org must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
4. (10 points) A foreign exchange dealer has $1 million for a short-term money market
investment. That is, he wants minimal risk in his investment, but he still wants to maximize
the available return. Given the following market rates in the U.S. and London, what would
you recommend? Why? And what is the annualized rate of return for your recommended
Spot exchange rate £1.2810/$
3-month forward rate £1.2740/$
3-month U.S. interest rate 4.800% p.a.
3-month £ rate 3.200% p.a.
*Note: p.a. stands for per annum, meaning the annualized rate. Assume that 3-months
represents exactly one-fourth of the year and make the necessary conversion.
5. (5 points) As of today, the exchange rate between the Brazilian real and U.S. dollar is
R$1.45/$. The consensus forecast for the U.S. and Brazilian inflation rates for the next oneyear
period is 3.6% and 16%, respectively. What would you forecast the exchange rate to be
one year in the future?
6. (10 points) Consider a spot exchange rate of $1.40/£ and a 3-month forward exchange rate of
$1.43/£. Assume a 3-month interest rate of 7.6% p.a. in the U.S. and 4.8% p.a. in the U.K.
Assume that you can borrow as much as $1,000,000.
a. Determine whether interest rate parity is holding. (Answer yes or no and show why.)
b. If IRP does not hold, calculate your profit.
7. (10 points) Due to the integrated nature of their capital markets, investors in both the U.S.
and U.K. require the same real interest rate of 2.5% on their lending. There is consensus in
capital markets that the annual inflation rate is likely to be 1.5% in the U.S. and 2.5% in the
U.K. for the next three years. The spot exchange rate is currently $1.34/£.
a. Compute the nominal interest rate p.a. in both the U.S. and U.K., assuming that the
simplified version of the Fisher effect holds.
b. What is your expected future spot dollar-pound exchange rate three years from now
Product Code :Bus14
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at email@example.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.