Question: Chapter 8 Running Your Own MNC Determining Whether IFE Holds Use The Wall Street Journal or another data source to record the interest rate differential
Chapter 8 Running Your Own MNC
Determining Whether IFE Holds
Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of China (Yuan) in which you plan to do business and the U.S. rate over the last five or so quarters. Then, review the exchange rate percentage change in the foreign currency of concern over each of those corresponding quarters to determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency.
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