Solution:
Given ,
1 Year interest rates in Europe = 4 %
1 Year interest rates in the U.S. = 2 %
You are translating $200,000 and spending $200,000 in French
Current spot rate of the euro = $1.20
a. (2%-4%)/(1+4%)=(S - 1.20) / 1.20
S= $1.1769 one year Euro rate
b. ( $1 / 1.20 )( 1 + 4% )* 1.12 = $.9707 return of -2.93% (loss)
c. ( $1 / 1.20) ( 1 + 4%)* 1.31 = $1.1353 return of 13.53% (gain)
d . ($1 / 1.20) ( 1 + 4%) *S = $1 (1+2%) ;
S=$1.1769
A spot rate of over $1.17697 (this is the same in part A) would be effective.
Answer:
Individualistic
Explanation:
Individualistic mindset focuses on the individual and gives them more emphasis than the group.
The opposite of individualism is collectivism or group mentality which emphasise the group over the individual.
To discuss the merger between the two companies, ABC company only sent one person while XYZ company sent 5 people from different departments.
ABC is most likely have a individualistic mindset and they feel one person can handle the negotiation.
On the other hand XYZ sent representatives from each department. This shows the organisation has to agree to the deal so all departments are involved.
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Answer
A. Currency exchange-Foreign money
B.Commodity Market-Raw, unprocessed goods
C.Stock Market -Shares in corporations
Explanation
Currency exchange market- this is market that deals with the exchange of foreign currencies where the participants members are able to buy and sell currencies. They are normally made of banks, commercial companies, Forex brokers and many other participants.
Commodity Market- This is a type of market where unprocessed materials are sold. Many producers buy the raw materials from these market for further processing.
Stock market- This is the market that deals with trading of shares. Sellers and buyers of stocks which is also called shares gather here. This normally happens that a certain company needs to raise a certain amount of money so the stock buyer will have bought a piece of that company.
Answer:
Competition and consumer trends
Explanation:
The Hays company makes a variety of products including sodas like cola, diet-cola, orange soda. Initially it had less competition, but more companies have entered the market.
Due to increased competition the Hays company will need to develop strategies to gain competitive advantage and by extension market in the more competitive market.
Also consumer trends is nowoving towards speciality sodas. The company will need to reduce the variety of sodas they produce and specialise in the product the consumers prefer.
