Tutorial 7: Management of Economic Exposure QUESTIONS 1. How would you define economic exposure to exchange risk? Answer: Economic exposure can be defined as the possibility that the firm’s cash flows and thus its market value may be affected by the unexpected exchange rate changes. 2. Explain the following statement: “Exposure is the regression coefficient.” Answer: Exposure to currency risk can be appropriately measured by the sensitivity of the firm’s future cash flows and the
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B. Output per person necessarily decreases. C. Output per person necessarily remains unchanged. D. There is not enough information to determine what happens to output per person. 3. Which of the following is the best example of financial investment? A. Ford Motor Co. builds a new manufacturing plant. B. A student pursues an MBA degree. C. A retiree purchases Google stock. D. A young couple purchases a new home. 4. In economics‚ the word “shocks” refers to: A. Situations where firms’
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Equal opportunities for women: Is it a myth or a reality in India? Global Position - GII India is ranked 129 out of 187 countries GII - captures the loss in achievement due to gender disparities in the areas of reproductive health‚ empowerment‚ and labour force participation‚ with 0 (perfect equality) to 1 (total inequality). India’s GII – 0.617 Global average of 0.492. Even Pakistan (115)‚ Bangladesh (112)‚ and Sri Lanka (74)‚ have performed better in terms of this indicator
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supplies price rises every so often. 2.) Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today? The opportunity cost of an item is what you give up to get that item. I’m not really sure what opportunity cost of coming to class today‚ but once in done I’m sure I will know the opportunity cost it took to come to class. I don’t really think I had an opportunity cost to coming to class because I don’t work at the
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"Internships: An Opportunity of a Lifetime" Internships are very important to a college student preparing for the world of work. It should be seen as an integral part of a student’s academic career. To get relevant experience‚ students should intern with employers who are doing the kind of work they are interested in pursuing after college. Internships are so important because they test one’s skills and interests‚ provide insight into prerequisites needed for employment‚ and develops a network
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Is the American dream still possible? The American dream is a question in itself. What is the American dream? How can it be achieved? Everyone has an individual idea of the “American dream”. In my opinion‚ the American dream is personal happiness and success. I am on the simple fulfillment side of the age old debate. Others believe money and riches‚ material prosperity‚ is the ideal goal. However‚ how far will objects get you? The question of the american dream was created far before technology was
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Equal Opportunity in Education Jessica Deighan Grand Canyon University EDU-215 November 14‚ 2010 Equal Opportunity in Education The education system in the United States has not always looked the way it does today and it was not that long ago when children of different races or sex could even go to the same schools as each other. Yet through many strides done by educational activists the United States government continues to stand by its intention to try to free our schools of racial‚ sexual
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Assignment 6: Ideas and Opportunities (20.0 points) In Section 6‚ you learned about recognizing business opportunities and finding business ideas. Now you’ll start developing an idea for your own company. 1. Describe 3 trends that you’ve noticed‚ and explain how each one might generate a small business opportunity. (3-6 sentences. 3.0 points)Figure out who the potential customers for your business are‚ and then talk to them. Find out if they would be interested in buying your product and service
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Solution to Case 02 Risk and Return Flirting With Risk Questions: 1. Imagine you are Bill. How would you explain to Mary the relationship between risk and return of individual stocks? I would explain to Mary that risk and return are positively related‚ i.e. if one expects to earn higher returns‚ then one has to be willing to invest in stocks whose price can vary significantly from year to year or in different economic conditions. For example‚ in the table
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Foreign Direct Investment (FDI) Definition: Foreign direct investment is of growing importance to global economic growth. This is especially for developing and emerging market countries. FDI from investors in developed areas like the EU and the U.S. provide funding and expertise to help smaller companies in these emerging markets to expand and increase international sales. Until recently‚ Southeast Asia was the greatest beneficiary of FDI. However‚ as of 2011‚ Latin America and the Caribbean
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