Nobody downloaded yet

International Business Questions - Assignment Example

Comments (0) Cite this document
The author answers the questions about fixed exchange rates, the theory of competitive advantage, strategic positioning, control over foreign operations, mutually beneficial partnership, Licensing Agreement, Letter of Credit, and the pros and cons of in house manufacturing and outsourcing. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
International Business Questions
Read TextPreview

Extract of sample "International Business Questions"

Download file to see previous pages In the given situation, the best option would be to wait till the month of December and then convert ¥400,000 at the spot rate at that time, which can be assumed as $1 = ¥100. In this particular case, one would have $4,000 in the middle of December. In this particular case, one would have $4,000 in the middle of December. If the current 180-day forward rate is lesser than 100¥/$, then, it might be preferable to have a forward contract, because it would lock the rate at a better level than before, as well as reduce the risk. However, if the rate is more than ¥100/$, then whether to wait and watch what the spot does or lock the forward rate, would entirely depend on the person’s risk aversion. A third possibility might also be considered. One could borrow money from any bank, which can be paid back by the ¥400,000, and could receive (400,000/1.03 = ¥388,350 borrowed), and then convert it at present time to US Dollar (388,350/130 = $2,987). This amount can be invested in US Dollars in a US account. But, in order to make it favorable, one would need to make a lot of interest (4,000 - 2,987 = $1,013) that would turn out to be at an annual rate of 51% ((1,013/4000) * 2). If these interest rates can be locked, then it would also reduce the exchange rate risk. However, what should be done is entirely dependent on the available interest rates, the available forward rates, the amount of risk the person willing to take, and also how certain the person is about the spot rate in the month of December would be ¥100 = $1. (Ch. 09 – The Foreign Exchange Market, n.d.)
Fixed exchange rates are based on arguments regarding speculation, discipline, uncertainty, along with the lack of connection in between exchange rates and trade balance. The need to maintain the fixed exchange rate parity in terms of monetary regulation ensures that money supplies at inflationary rates are not expanded by the governments.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(International Business Questions Assignment Example | Topics and Well Written Essays - 2500 words, n.d.)
International Business Questions Assignment Example | Topics and Well Written Essays - 2500 words. Retrieved from
(International Business Questions Assignment Example | Topics and Well Written Essays - 2500 Words)
International Business Questions Assignment Example | Topics and Well Written Essays - 2500 Words.
“International Business Questions Assignment Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF International Business Questions

Ansewering the international business policy (questions)

...a company’s organisational structure and strategies are formed. One of these models claim that when the demographics of the consumers change, a company must restructure immediately in order to cope with the demands of the new group of consumers (Hill and Jones, 2009). By doing this, the internal structure of the company would undergo some re-engineering to accommodate new demands from the growing consumers. For example, if some streets in London now have a sizeable number of immigrants. For the providers of services in such areas to maximise their businesses, they need to change their marketing system and the customer services policy to deal with the new customers. Another model that seems explain why a...
8 Pages(2000 words)Essay

Questions from international business competing in the global marketplace 8th edition by 'Hlll firms from foreign nations. Thus without the search engines, this would be a challenge to China. The economy of China would be affected adversely as well as the general public (education and research) together with its government (Publicity). For the search engines, there is not much to lose because they would simply fail to invest there and conduct their business elsewhere. Hence, they would just lose once i.e. on the investment already made but China would suffer technology wise forever. Question 2 Wal-Mart is global merchandise with many stores all over the world. Its success in Mexico could be related to the acquiring of Cifra. This was the leading chain of stores at the time and offered...
4 Pages(1000 words)Assignment

Marketing International Business: Branding, Communications and Relationships questions

...cultures and origins, it can offer background info that makes it easier to ask them sensible questions. Asking the clients questions about the customs and cultures: It is always advisable for any business to question the clients about their cultures and lives and this makes the business learn about them, hence, develop relationships with them (Kotler, 2000, p.121). The clients are always pleased when the business officials ask them questions regarding their cultures. Care and showing care to the clients: Businesses should also care for the customers. When the clients feel that the...
3 Pages(750 words)Assignment

International Business Questions

...predicated on market perceptions of them as belonging to and understanding of the market in question, entailing the design of strategies which are consistent with the micro-environment. International strategies are inconsistent with the very notion of the micro-environment while regional strategies are (Roth and Morrison, 1990; Rugman, 2001). It is for this reason that multinational firms adhere to regional, as opposed to international strategies. It is important to emphasise that corporations are embracing the basic principles of globalization, as evidenced by ever increasing cross-border trade and the widening grip of MNEs on international...
6 Pages(1500 words)Essay

Business questions

...Answer The fast changing pace of the technology can be observed in the study of the organizations and the changing role of leadership within the organizations. The role of leaders, managers and the administrators of the organizations become more challenging when new technologies are introduced in the organizations. The good leadership ensures effective communication with the employees with shared vision of the new technology, thus promoting better understanding among the employees for easy changeover. The managers and the administrators need to be guided by the group leaders within the organization to implement the changes in a smooth manner. Answer 2 Leadership basically refers to people who have the capacity to bring about... The fast...
2 Pages(500 words)Essay


...1. (TCO A) Describe the concept of globalization. What are the major opportunities and challenges that globalization has created for business organizations? Globalization can broadly be defined as the continuous process through which there is an ever increasing level of integration among companies, people and the governments of different nations all spread out all over the world. It is mainly driven by investment and increased international trade and is greatly aided by information technology. Some of the major opportunities that globalization has created for business organizations include: Increased cross boundary trade between nation countries meaning larger markets for...
2 Pages(500 words)Essay

Business questions

...Business questions Question1a It is important for managers to understand the external forces in the market as they depend on the environment for inputs and in the long run, outputs (Jones & George, 208). Jones & George indicate that an understanding of the external forces may result to managers coming up with successful innovations; thus, given a better opportunity to be flexible in the market (211). High performance is highly dependent on an evaluation of the external forces. Question1b Political, legal and economic forces shape a nation’s culture since these forces are the major determinants of what is legal in a country and what is not. As Jones & George say, consumption and investment rates are...
1 Pages(250 words)Essay

Answer those 40 questions only and provide me with the full and explained answer in international business

...Questions and Answers on International Business Questions and Answers on International Business Q1. The developing markets such as Brazil, India, China, and Russia has half of the world GDP. Q2. The countries that comprise the BRIC include China, Russia, India, and Brazil. BRIC does not include USA. They are also the four emerging markets. Also, Mexico is not. Though it was interested to be part of BRICS. Q3. The worldwide economy can be viewed as a pyramid. The top of the pyramid are individuals with an earnings of 20, 000$ or higher per annum. The triad comprises Japan, North America, and Western Europe. These are the well-developed...
2 Pages(500 words)Term Paper

International Business exam questions: 1)-Is the internationalisation of production best understood from the perspective of efficiency or strategy Develop your answer using examples as appropriate. 2) Examine the uneven impact of the global financial cr

...the political system, a typical example is that of locating a business in a foreign country through evasion of trade fiction. The dislocation of a business into a foreign country avoids implications on a business that may be brought by two countries confronting due to certain political interests. Under the intercontinental economy system, harmonization focuses on the production of procurement facilities to assist in checking the profits’ variations brought by fluctuation rates of the foreign currency, particularly those businesses that rely on dollar payments. Conclusively, internationalization of the financial activities is a good example where features of the...
4 Pages(1000 words)Essay

Questions Concerned International Business Law

...International Business Law Question No 1 1. Critically Assess The Legal Risks Definitley May be or Will be Exposing Itself To If It Embarks On Exports Of Chocolates To (UNITED ARAB EMIRATES) There are legal risks while exporting to Chocolates to UAE. The geographical position of UAE is such that it acts as a drug transhipment center for drug traffickers considering its nearness to drug producing nations in the Southwest Asia. Further, UAE’s current status as a chief financial hub, facilitates it to be susceptible to money laundering as the informal banking in UAE is still not regulated adequately. (Index Mundi 2010). UAE has banned the import of Coca, which is known as Erythroxylum...
10 Pages(2500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic International Business Questions for FREE!

Contact Us