Choose one of the following topics. Prepare a 1,050- to 1,750-word paper in which you analyze one of the following global financing and exchange rate topics:
· Purchasing power parity and the Big Mac index
· Currency hedging
· Hard and soft currencies
· Countertrade
· Financing via letters of credit and EXIM Bank and commercial banks
· Tariff and nontariff barriers
· Roles of international financial institutions (e.g. IMF, World Bank, ADB, etc.)
· Euro currency markets
Define your selected topic.
Explain how your topic is used in global financing operations and describe its importance in managing risks.