After watching the video on interest rates at the European Central Bank, discuss the following: 1. How
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1. How will the rise in interest rates affect FDI for these euro zone countries?
2. What reasons can you suggest for the lack of growth in Portugal, Ireland, Greece, and Spain?
3. What role may strategic hedging play in the success of firms in euro zone countries?
4. Are fixed or floating exchange rates better for the euro zone countries?
5. Will the value of the dollar continue to be a debate with regard to foreign exchange?
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1 Text If one countrys interest rate is high relative to other countries the country will attract foreign funds FDI in the Euro zone Given that the sa...View the full answer
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