International Finance and Political Risk
Activity Instruction
Choose a country (not the United States or Canada) then, identify some political and currency risks of that country and discuss why a U.S. company would invest (for example, build a factory) in that country.
Also discuss some of the various international finance topics such as the foreign exchange market, purchasing power parity, interest rate parity, cross rates, and so on.
Why is it important for international firms to understand these concepts?