Search icone
Search and publish your papers
Our Guarantee
We guarantee quality.
Find out more!

Case studies of international finance

Or download with : a doc exchange

About the author

 
Level
Expert

About the document

Acepublisher .
Published date
Language
documents in English
Format
Word
Type
presentations
Pages
9 pages
Level
Expert
Accessed
0 times
Validated by
Committee Oboolo.com
0 Comment
Rate this document
  1. You have to answer the following questions concerning international finance
    1. You have the following information about the exchange rates between two countries
    2. Arbitrage
    3. You work at a British firm and are expecting to receive ?1,000,000 in 6 months. You have the following information
    4. International profits
  2. Answers
    1. You have the following information about the exchange rates between the US dollar and the Euro
    2. Arbitrage
    3. You work at a British firm and are expecting to receive ?1,000,000 in 6 months. You have the following information
    4. International profits

This document presents practical cases about international finance (exchange rates and international trade, profits and arbitrage etc.). Extract: "The Purchasing Power Parity is an economic technique that we can use when we want to determine the relative values of two currencies. It is useful because generally the amount of goods that can be bought with a currency varies drastically between different nations, based on availability of goods, demand for the goods, and a number of other, difficult to determine factors. Purchasing Power Parity solves this problem by taking some international measure and determining the cost for that measure in each of the two currencies, then comparing that amount. Perhaps the most famous example of Purchasing Power Parity was given by the Economist Magazine as the Big Mac index. The Big Mac is in fact the most similar product across different countries. That is why this measure became important according to analysts. It is also that Mc Donald's pricing strategy is very well established. Using the Big Mac index, we determine the cost of a Big Mac in a number of countries and can then conclude an exchange rate based on this index."

Similar documents you may be interested in reading.

Study of the oil and gas sector

 Economics & finance   |  Economics   |  Term papers   |  12/17/2010   |   .doc   |   18 pages

'Worldwide economy in 2010': CEPII (Center of exploratory studies and international information)

 Economics & finance   |  Economics   |  Term papers   |  12/30/2010   |   .doc   |   8 pages

Most rated for finance

Financial analysis of Microsoft

 Economics & finance   |  Finance   |  Case study   |  01/19/2012   |   .pdf   |   30 pages