Chp 22 - problems 1-4

Chp 22 - problems 1-4 - 22-1.What additional factors are...

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Unformatted text preview: 22-1.What additional factors are encountered in international as compared with domestic financial management? Discuss each briefly.22-2.What different types of businesses operate in the international environment? Why are the techniques and strategies available to these firms different?22-3.What is meant by arbitrage profits?22-4.What are the markets and mechanics involved in generating (a) simple arbitrage profits, and (b) triangular arbitrage profits?Comparing Domestic Financial Management with International Financial Management:When comparing the Domestic Financial Management with International Financial Management, the most important factor is Exchange Rate. 1 Exchange Rate arises between Domestic Company (DC) and Multi National Corporation (MNC). Multi National Corporation (MNC) has got the operations around the world. This means they have to deal with an international group of customers, shareholders and suppliers. The MNC have to take consideration Exchange Rate fluctuations, as it affects their sales and investment decisions. And also it affects the way fluctuations, as it affects their sales and investment decisions....
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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Chp 22 - problems 1-4 - 22-1.What additional factors are...

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