Business, 25.02.2021 19:10 alissa3329

Assume that the United States invests in government and corporate securities of Country K. In addition, residents of Country K invest in the United States. Approximately $10 million worth of investment transactions occur between these two countries each year. The total dollar value of trade transactions per year is about $8 billion. This information is expected to also hold in the future. Because your firm exports goods to Country K, your job as international cash manager requires you to forecast the value of Country K’s currency (the "krank") with respect to the dollar. Explain how each of the following conditions will affect the value of the krank, holding other things equal. Then, aggregate all of these impacts to develop an overall forecast of the krank’s movement against the dollar.
a. The U. S. inflation has suddenly increased substantially, while Country K’s inflation remains low.
b. The U. S. interest rates have increased substantially, while Country K’s interest rates remain low. Investors of both countries are attracted to high interest rates.
c. The U. S. income level increased substantially, while Country K’s income level has remained unchanged.
d. The U. S. is expected to impose a small tariff on goods imported from Country K.
e. Combine all expected impacts to develop an overall forecast.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 14:40

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.

Answers: 3

Answer

Business, 22.06.2019 22:30

Which of the following situations is most likely to change a buyer's market into a seller's market? a. a natural disaster that drives away a lot of the population. b. the price of building materials suddenly going up. c. the government buys up a lot of houses to build a new freeway. d. a factory laying off a lot of workers in the area.

Answers: 1

Answer

Business, 23.06.2019 11:00

To evaluate solutions, you must usually

Answers: 1

Answer

Business, 23.06.2019 16:10

Identify whether each acquisition is allowable under eminent domain. yes no

Answers: 1

Answer

You know the right answer?

Assume that the United States invests in government and corporate securities of Country K. In additi...