Financing International Trade
Discussion Questions
Need 250 words response for each discussion
“Financing International Trade” Please respond to the following:
- Compare two (2) methods that a company can use in order to finance international trade. Examine the advantages and disadvantages of financing with a portfolio of currencies. Provide two (2) examples of how companies or MNCs finance international transactions by using their own “bank” or by keeping currencies on hand (marketable securities).
- Analyze Interest Rate Parity (IRP) and two (2) methods for forecasting exchange rates. Determine the primary manner in which they all affect a company’s short-term financing decision. Support your response with one (1) example of the manner in which IRP and forecasting exchange rates methods affect a company’s short-term financing decision.
Answer PreviewInternational trade refers to the exchange of goods and services as well as capital across borders. It may happen between citizens of two nations, companies or between two countries. There are different methods that a company can use in order to finance such trade. One of the methods that are usually used is open account. This type of method…
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