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ki77a [65]
3 years ago
14

"If the interest rate on a U.S. one-year bond is 2%, the interest rate on a Brazilian one-year bond is 8%, and the currency prem

ium on reals (Brazilian currency) is 3%, what is the expected rate of appreciation of the U.S. dollar according to interest-rate parity?"
Business
1 answer:
cluponka [151]3 years ago
5 0

3% is the answer.

<u>Explanation:</u>

The financial matters of market interest direct that when the request is high, costs rise and the cash acknowledges in esteem. Conversely, if a nation imports more than it sends out, there is generally less interest in its money, so costs should decrease.

On account of cash, it deteriorates or loses esteem. The stockpile of money is dictated by the local interest for imports from abroad. The more it imports the more noteworthy the inventory of pounds onto the outside trade advertise. An enormous extent of momentary exchange monetary standards is by sellers who work for money related organizations.

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Business messages typically follow either a direct strategy or an indirect strategy. The direct strategy, or frontloading, place
UkoKoshka [18]

Answer:

The statement is: True.

Explanation:

In Business writing, there are two methods of composing a message. The direct strategy starts by providing the purpose of the message at the beginning and adds supporting details in the body. The indirect strategy starts by providing supporting details to attract the audience and ends giving the main idea of the speech.

6 0
3 years ago
What function of money is highlighted when sally pays her cell phone bill with cash?
sineoko [7]
It is the medium of exchange. It serves as the mediator instrument used to encourage the deal, buy or exchange of products between parties. For an instrument to work as a medium of trade, it must speak to a standard of significant worth acknowledged by all gatherings. In present-day economies, the medium of trade is money.
7 0
3 years ago
1- In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Based upon your analysis of W
Ivahew [28]

Answer:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

Explanation:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

4 0
3 years ago
Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and c
Natalija [7]

Answer:

a. Increase the direct costs of the state's debt.

Explanation:

When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.

As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased

5 0
3 years ago
Marco is a Latino who lives in Boston, Massachusetts. Over the years, he has noticed that more stores in his community specializ
boyakko [2]

Answer:

<u>the trend of more Latino immigration </u>

Explanation:

The stores have identified a market opportunity because of the increase in Latino immigrants in Boston, Massachusetts.

Note that when a significant amount of a population come from a certain ethnic group, demand for ethnic products is more likely to increase. Thus, this has made Marco feel very much at home.

3 0
3 years ago
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