Volatile fluctuations and uncertainty in us dollar

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
- Volatile fluctuations and uncertainty in U.S. dollar will have pervasive influence on all major economic functions, i.e. consumption, production and investment. Political Risks - Political risks arise from the fact that a sovereign country can change the “rules of the game” and the affected parties may have effective resource. - E.g. unexpected changes in tax rules, outright expropriation of assets held by foreigners. Market imperfections - An imperfect market refers to any economic market that does not meet the rigorous standards of a hypothetical perfectly (or “purely”) competitive market . - An imperfect market arises whenever individual buyers and sellers can influence prices and production , or otherwise when perfect information is not known to all market actors. - Market imperfections represent various frictions and impediments preventing markets from functioning perfectly. Expanded opportunity set
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
- Refer to the benefits where MNCs can maximize their performance and raise funds in any capital market where the cost of capital is the lowest . - MNC can also gain from greater economies of scale when their tangible and intangible assets are deployed on a global basis. - Individual investors can also benefit if they invest internationally rather than domestically.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern