dont copy and paste. Ref: International Finance. Answer all the questions. In Fort Pierce, Florida, Citrus Daniel Fruit Inc. is a medium scale manufacturer of citrus fruit juices with orchards. The company's activities and sales have been limited to the United States up until now, but its CEO, Scott L. Garrett, wants to expand into the Asia Pacific. The initial step is to establish sales subsidiaries in Japan and Australia, followed by a manufacturing factory in Japan, and lastly, distribution throughout the Asia Pacific. Claudine Paige, the firm's finance manager, is excited about the idea, but she is concerned about the impact of the international growth on the firm's financial management process. She's asked you, the firm's newest financial analyst, to create a one-hour teaching package that covers the fundamentals of multinational financial management. At the next board of directors meeting, the lesson will be given. Schmidt has provided you with a set of questions to get you started. What is a global company, and what does it do? Why do companies branch out into new countries? What are the five significant differences between multinational financial management and financial management in a strictly local firm? Consider the following exchange rates as examples: U.5. Dollars Required to Buy One Unit of Foreign Currency Japanese yen 0.009 Australian dollar 0.650 1. Are direct quotes or indirect quotes for these currency prices? 2. Calculate yen and Australian dollars indirect quotes. 3. What's the pace of crossing? The 2 cross-rate rates between yen and Australian dollars are calculated. 4. Assume that Citrus can make and send to Japan for $1.75 a liter of orange juice. If the company wants a 50% increase on the product, what does orange juice have to sell in Japan? 5. Now say that Citrus Daniel Fruit in Japan starts to produce the same liter of orange juice. The product is 250 yen for production and shipment to Australia for 6 Australian dollars. What is the US dollar selling profit? 6. What is the currency risk? 6. d. The existing international monetary system is described briefly. What are the many sorts of currency systems? g. How do spot rates and forward rates differ? When does the forward rate at a spot rate premium? Where's the discount? f. What is parity of interest rate? You can trading 1 yen in the 30-day forward market for 0,0095 US Dollar at now, and the risk-free rate on 30-day securities is 4% in Japan and the US. Doctors maintain interest rate parity? Otherwise, which securities have the biggest predicted return? g. What is the parity of purchasing power (PPP)? Where grapefruit juice costs $2 a liter in the United States and has a parity in the buying power, what price should Australian grapefruit juice be? b. What is the impact on interest rates and exchange rates of relative inflation? i. 1. Discuss precisely the three main forms of international credit markets. 2. Give a brief how ADKs function. j. What is the impact on capital budgeting choices of multinational transactions? k. How different are the typical capital structures in various countries