"Management of Translation Exposure" Please respond to the following:
• From the e-Activity, discuss the most significant ramifications of FASB 8 and FASB 52 on U.S. business and accounting firms. Provide specific examples to support your response.
• Generally, it is not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other. But in other cases, the elimination of one exposure actually creates the other. Discuss which exposure is the most important to manage if a conflict between controlling both arises. Explain your rationale and provide at least two examples to support your response.
"International Banking and Money Market" Please respond to the following:
• Compare and contrast the deposit-loan rate spread in the Eurodollar market with the deposit-loan rate spread in the domestic U.S. banking system.
• Determine and discuss how the major factors of the credit crunch beginning in the U.S. in 2007 blossomed into a global financial crisis. Explain your rationale.