Exam 19: International Corporate Finance

A U.S. firm is expecting cash flows of 20 million Mexican pesos and 35 million Indian rupees. The current spot exchange rates are: $1 = 11.792 pesos and $1 = 49.204 rupees. If these cash flows are not received for one year and the expected spot rates at that time will be $1 = 11.118 pesos and $1 = 41.075 rupees, then what is the difference in dollars received that was caused by the delay?

Which of these is defined as an exchange rate regime where a currency's price is fixed to the value of another currency or to a basket of other currencies?

If the current spot rate between the U.S. dollar and the Swedish krona was $1 = 7.5423 krona, and if the inflation rate in the United States was 5 percent and in Sweden it was 2 percent, then what would be the expected spot rate in one year?

Which of the following is an economic principle that states all identical goods in different markets must have the same price?

If fewer dollars will buy a unit of foreign currency, then the dollar is:

Convert the following indirect quote to a dollar direct quote: $1 = 15,990 Vietnam dong

Which of the following is a theory that the difference in interest rates between two countries is equal to the difference between the forward currency exchange rate and the spot exchange rate?

Suppose exchange rates between the U.S. dollar and the Mexican peso is 12.90 peso = $1 and the exchange rate between the U.S. dollar and the euro is $1 = 0.90 euros. What is the cross-rate of the Mexican peso to the euro?

Convert the following direct quote to a dollar indirect quote: 1 Danish krone = $0.1755

Given these two exchange rates, $1 = 14.96 Mexican peso and $1 = €0.67, compute the cross-rate between the Mexican peso and the euro. State this exchange rate in pesos.

Convert the following direct quote to a dollar indirect quote: 1 Thai baht = $0.03057

A golf club costs $100 in the United States. The same club costs AU$143 in Australia. Assume that purchasing power parity holds. What is the exchange rate between the U.S. and Australian dollars?

Given these two exchange rates, $1 = 12.5 Mexican peso and $1 = €0.75, compute the cross-rate between the Mexican peso and the euro. State this exchange rate in pesos.

Convert the following direct quote to a dollar indirect quote: 1 Malaysian ringget = $0.2875

Which of these is defined as an exchange rate regime where the currency is completely determined by the foreign-exchange market through supply and demand?

Convert the following direct quote to dollar indirect quote: 1 Danish krone = $0.1991.

A U.S. firm is expecting cash flows of 15 million Mexican pesos and 20 million Indian rupees. The current spot exchange rates are: $1 = 11.501 pesos and $1 = 45.525 rupees. If these cash flows are not received for one year and the expected spot rates at that time will be $1 = 11.265 pesos and $1 = 45.005 rupees, then what is the difference in dollars received that was caused by the delay?

In the late 1990s, many East Asian currencies suddenly and dramatically devalued. What is the percentage change in value of a $10 million investment in Indonesia when the exchange rate changes from $1 = 3,000 rupiah to $1 = 10,000 rupiah?

Which of these is an international organization that deals with international trade rules and helps settle disputes between its member governments?

Which of these is defined as the amount of domestic currency it takes to buy one unit of foreign currency?