1. Nykke, Inc., is considering establishing a subsidiary in Canada that would manufacture and sell sports shoes...
Question:
1. Nykke, Inc., is considering establishing a subsidiary in Canada that would manufacture and sell sports shoes locally. The project would require an initial investment of 50 million Canadian dollars (C$), which includes funds to support working capital. Given the existing spot rate of $0.80 per Canadian dollar, the U.S. dollar amount of the parent's initial investment is ________________.
2. ___________ risk is project risk attributable to general market conditions.
3. _______ is a technique that uses probability distributions to assess the degree of uncertainty for a project.
4. Multinational corporations may sometimes experience a temporary shortage of funds, in which case they may rely on __________________ until they receive sufficient cash inflows to cover the shortage.
5. _______________ can be broadly defined to mean optimization of cash flows and investment of excess cash.
6. In an ____________ transaction, the exporter ships the merchandise and expects the importer to send payment according to the agreed-upon terms.
7. Under the _________ method, the exporter will not ship the products until it has received payment from the importer.
8. An importer's bank (also referred to as the "issuing bank") issues a ________________ by making a written commitment on behalf of the importer to pay the exporter when the importer's bank receives shipping documents confirming that the exporter has shipped the products to the importer.