answer each question using at least 250 words
Question 27 # 1
“Why People Cheat”. I do not have to list the examples of cheating in Sports, Investment Banks and Corporations that we have seen over the last several years. Please go to this link and watch the presentation by Dan Ariely: Why People Cheat.
What is your take? I will review your post but will not comment on it. You are not limited to 150 words but you should write at least 120 words. Please feel free to respectfully comment on each other’s postings.
27 #2
Please review the financial statements of either Starbucks or Boeing and determining how they use interest rate or currency or swaps to hedge interest rate risk and currency risk. Do they borrow in foreign currencies?
4-3
Assume you are the economist for a MNC and your job is to keep the CFO and CEO abreast of events affecting the foreign exchange markets now. Comment on one event occurring in the market that may affect exchange rates that your boss should be aware of and understand. Your job is to make her look smart. I expect you to base and support your conclusions using what we have read, heard on podcasts and any additional research you can get from the web. There is no word limit however you must write at lease 200 words.
Question 10
Assume that you have decided to hedge future payables that are coming from your country of choice to a US MNC. How would the US MNC hedge these payables? Please go through the specific steps required to hedge for 1 million dollars of payables. Please use numbers. There is more than one way to hedge. You only need to choose one to go through, however, I would like you to describe the other methods.
Economic Exposure AKA Operating Exposure:
Assume that you are a US-based MNC. Please tell me how you would assess and reduce the economic exposure for a company that the US MNC owns in your country of choice. If your country is the US then choose any other country
