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How is the exchange rate determined? What is the theory of the Purchasing Power Parity (PPP)?

Economics Exchange Rate Determination in the Long Run – Data Evidence of the Theory of Purchasing Power Parity Nowadays, most countries are involved in international trade, which requires them to convert their currencies into other countries’ currencies to make investments, and/or export or import goods. An essential task of economists in any country is the […]

Discuss the merits and drawbacks to hedging currency transactions even though PPP states that supply and demand for currencies will come into equilibrium in the long run.

Explain what the Balance of Payments is and provide some details and examples of the components of the Current Account and the Capital/Financial Account. (10 marks) Establish clearly how two of the parities (i.e., Purchasing Power Parity (PPP) and Interest Rate Parity (IRP)) relate specific accounts of the Balance of Payments to the movements of […]

What is the most recent inflation rate and does it compare to the inflation rate for the same year in the United States?

Description GDP and GDP Per Capita: compare these values for your country with those for the United States, keep the year used as close as possible (the same year is preferred, if available), be specific about the currency in which the numbers are expressed – you should be able to obtain all values in US […]

Critically evaluate the financial implications of the predicted exchange rate on assisting the decision making process in managing/hedging the exposure of exchange risk in the international business activities of the selected MNC.

Description Assuming the role of the International Finance Manager, you are required to prepare a report on the international financial management issues facing a MNC of your choice. Specifically, in your report you need to address the following: 1)Critically analyse the international constraints, from a stakeholder perspective, affecting MNC’s international business activities. 2) Discuss the […]

Can Jack and the other members of the queue sue for PPP for their Psychiatric injuries?

Prepare a report ▪As the marketing manager for PPP, you have been asked to produce a report that addresses the following issues ▪Issue One: Can Jack sue for misrepresentation? ▪Issue Two: Can Jack sue for PPP for his injuries? ▪Issue Three: Can Jill sue for PPP for her physical injuries? ▪Issue Four: Can Jill sue […]

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