1. A change in real exchange rates impacts on a number of aspects of the firm’s operations. Explain these effects and suggest how the firm might manage them ?
2. Explain the factors affecting exchange rates in a floating exchange rate system.
3. Yogurt business: Calculate liquidity ratios and explain how they demonstrate the state of current assets and liabilities.
4. Explain the additional factors which must be taken into account when evaluating foreign investment projects
5. Explain the terms ‘country risk’ and ‘political risk’ and evaluate how they might be usefully applied in practice.
6. Explain the influences and factors which determine foreign exchange rates.
7. Purchasing Power Parity implies offsetting changes in price levels and exchange rates. What evidence is there to support this idea?
8. Construct a cash budget and determine monthly cash needs and cash burn rate measures for Yogurt business.