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INSTRUCTION: You are required to answer ALL questions. QUESTION 1 a. Explain why an MNC may invest funds in a financial
Posted: Thu May 19, 2022 7:13 am
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- Instruction You Are Required To Answer All Questions Question 1 A Explain Why An Mnc May Invest Funds In A Financial 1 (60.19 KiB) Viewed 58 times
INSTRUCTION: You are required to answer ALL
questions.
QUESTION 1 a. Explain why an MNC may invest funds in a financial market outside its own country. (10 marks) b. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. (10 marks) C. The Flora Corporation is a U.S. exporter that invoices its exports to the United Kingdom in British pounds. If expects that the pound will appreciate against the dollar in the future, should it hedge its exports with a forward contract? Explain. (5 marks) (Total: 25 marks)