Question: Explain briefly fundamental exchange rate forecasting and technical analysis. Discuss a limitation (or weakness) for each analysis. (3 marks) C. What are the three

Explain briefly fundamental exchange rate forecasting and technical analysis. Discuss a  limitation (or weakness) for each analysis. (3 marks)  
C. What are the three investment puzzles in cross-border investments? Provide a resolution  for ONE of the three investment puzzles based on real option analysis.  
D. Explain a letter of credit. Identify each party to a letter of credit and indicates its  responsibility. Discuss advantages and disadvantages of a letter of credit.  
 
 
 

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Fundamental Exchange Rate Forecasting Explanation Fundamental exchange rate forecasting involves analyzing economic factors such as inflation rates interest rates GDP growth trade balances and politic... View full answer

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