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Unformatted text preview: For emerging market the main factors which should be consider are exchange rate, interest rate, inflation etc and in emerging market companies cash flow is denominated in several currencies. In emerging market PPP is important because most of the company determine its revenue in dollar where as many of expenses such as labour expanses, purchasing expenses etc accord in its domestic currency. For balancing it is important to use PPP theory and notice the exchange rate which reflects the expenses or some time income of the company....
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- Fall '11