International Finance

BBF3284 INTERNATIONAL FINANCE sort ASSIGNMENT LECTURE: Dr. Devinaga a/p K.Rasiah GROUP 13 SECTION BM301 NAME| ID crook| Muhammad Faris b Mohd Sidek| 1091104854| Enishajit Kaur a/p Harjit Singh| 1091105415| Chan Kahr Heng| 1101107251| Navind Kumar a/l Vijayan| 1091105414| burning Wee Sheng| 1111111766| Tan Woei Yeh| 1081100227| Yong Zi Xian| 1081103780| Puneswary Apparow| 1101107920| Wong Eng Kiat| 1081102312| Yeo Li Wei| 1081101085| QUESTION 1: why might setting up production facilities abroad pulling to expanded sales in local trades? ANSWERS: The setting up production facilities abroad lead to expanded sales in local markets is by producing abroad. This think ab give away a ships company can more(prenominal) easily play along abreast of market developments, adapting its products and production schedules to changing local tastes and conditions while, simultaneously providing more comprehensive after-sales service. Establishing loca l production facilities also demonstrates a greater commitment to the local market and an increased boldness of yield stability. This is particularly important for firms that produce intermediate goods for sale to new(prenominal) companies.

QUESTION 2: As a orthogonal supersede trade at Deutsche Bank, one of your customers would like a hankering quote on Australian dollars. The current post market rates are ¥101.37-85/U.S.$ and A$1.2924-44/U.S$. What bid and direct hankering cross rates would you quote on key out Australian dollars? ANSWERS: By means of triangular arbitrage, we can reason out the marke t quotes for the Australian dollar in terms ! of ache as ¥78.31-81/A$1. These prices can be found as follows. For the yen bid price for the Australian dollar, we need to beginning sell Australian dollars for U.S. dollars and then sell the U.S. dollars for yen. It costs a $1.2944 to buy U.S. $1. With U.S. $1 we can buy ¥101.37. Hence, A$1.2944 = ¥101.37, or A$1 = ¥78.31. This is the yen bid price for the Australian dollar. The yen ask price...If you want to get a reliable essay, order it on our website: OrderCustomPaper.com

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