Question: 1. What additional factors are encountered in international as compared with domestic financial management? Discuss each briefly.
2. What different types of businesses operate in the international environment? Why are the techniques and strategies available to these firms different?
3. What is meant by arbitrage profits?
4. What are the markets and mechanics involved in generating simple arbitrage profits?
5. How do purchasing-power parity, interest rate parity, and the Fisher effect explain the relationships among the current spot rate, the future spot rate, and the forward rate?