Problem 1. What is meant by the globalization of :
a. financial markets?
b. How was technology affected the process of globalization?
c. How has globalization affected gov't regulation of national capital markets?
Problem 2. List some reasons why a U.S. based corp might issue debt denominated in a foreign currency?
Problem 3. What are the basic reason for the existence of the Eurodollar market? What factors have accounted for its growth over time?
Problem 4. Explain the advantages and disadvantages of each of the following forms of export financing:
bankers' acceptance, discounting, factoring, forfaiting.
Problem 5. Suppose that the current 180 days Interbank Eurodollar rate is 9 percent (all rates are stated on an annualized basis) if next period's rate is 9.5%. What will a Eurocurrency loan priced at LIBOR plus 1 percent cost?