--%>
Assignment Help - homework help

Short-term and long-term effects of foreigners portfolio

Since the early year of 1980s, foreign portfolio investors have purchased important portion of U.S. treasury bond issues. Simplify short-term & long-term effects of foreigners' portfolio investment on the U.S. balance of payments.
As foreigners purchase U.S. Treasury bonds, U.S. BOP will build up in the short run. Although in the long run, U.S. BOP may deteriorate as the U.S. must pay interests & principals to foreigners. If foreign funds are utilized productively and contributes to the competitiveness of U.S. industries, conversely, U.S. BOP might develop in the long run

   Related Questions in Financial Management

  • Q : Fin 6000 A firm is evaluating two

    A firm is evaluating two mutually exclusive projects that have unequal lives. Evaluate the projects using the equivalent annual annuity approach (EAA), recommend which project they should select. The firm's cost of capital has been determined to be 18 percent, and the projects have the following i

    		•
  • Q : Quantitative finance in disrepute for

    Explain the field of quantitative finance in disrepute for biggest financial collapse in all decades.

    		•
  • Q : Compute minimum price with striking

    Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American call option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurod

    		•
  • Q : Trading at small figure bid-ask of 35-40

    A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi

    		•
  • Q : What is excess return What is excess

    What is excess return?

    		•
  • Q : What is cardinal utility What is

    What is cardinal utility?

    		•
  • Q : Define International Finance

    International Finance: It is the branch of economics which studies the dynamics of exchange rates, foreign investment, and how such affect international trade. International finance activities aid organizations emp

    		•
  • Q : Describe the three major trend in

    Describe the three major trends which have prevailed in international business at the time the last two decades.The 1980s brought a quick integration of international capital & financial markets. Impetus for globalized financial markets prim

    		•
  • Q : Difference between financial risk and

    Explain in brief the difference between financial risk and business risk?

    		•
  • Q : Describe the long position in an

    Describe the long position in an options contract?An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the

    		•