What indicators would you look for in assessing the political riskiness of an investment in Eastern Europe?
Answer to relevant QuestionsExhibit 6.8 describes some economic changes that have been instituted by Mexico.a. What are the likely consequences of those changes?b. Who are the winners and the losers from these economic changes?In the early 1990s, China decided that by 2000 it would boost its electricity-generating capacity by more than half. To do that, it planned on foreigners’ investing at least $20 billion of the roughly $100 billion tab. ...Suppose the euro is quoted at 0.6064–80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt.a. Is there a profitable arbitrage situation? Describe it.b. Compute the percentage bid-ask spreads on the pound ...Suppose that Bechtel Group wants to hedge a bid on a Japanese construction project. However, the yen exposure is contingent on acceptance of its bid, so Bechtel decides to buy a put option for the ¥15 billion bid amount ...Dell Computers wants to borrow pounds, and Virgin Airlines wants to borrow dollars. Because Dell is better known in the United States, it can borrow on its own dollars at 7% and pounds at 9%, whereas Virgin can on its own ...
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