Assignment: International Finance
Read the article and answer the four questions with reasoned qualitative answer:
1. What are the different types of foreign-exchange risk that WMC will encounter?
2. Explain why borrowings in US dollars and forward sales of US dollar revenues by Australian mining companies in the 1980s had backfired.
3. Explain why WMC decided to borrow in a basket of currencies rather than exclusively in US dollars or Australian dollars.
4. Explain why WMC decided not to hedge its economic exposure(i.e., future US-dollar revenues).
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Article.rar