HW Assignment Example | Topics and Well Written Essays - 250 words - 18

HW - Assignment ExampleIt relates to the growth of MNC by evaluating the stages that an international product has to go through consequently revealing product decline and appreciations as a result of competitionc. lowly home inflation go forth mean high consumption and less saving. This leave alone in travel increase imports and reduce export thus change magnitude deficit in a countrys current account. Foreign imports will signify a strong competition thus low inflation.The necessity for south Korean won will increase with the increase in demand for imports. The supply for South Korean won will reduce due to increase in its exports. The result will be a shift in equilibrium pass judgment of the South Korean won upwards, thus increasing its value.The high interest rates in US will increase demand for US specie as a result of hot money flows. This will see appreciation in US dollar demand for Argentina pesos will decrease, while its supply will increase. The equilibrium valu e for the pesos will thus depreciateRise in income levels of US will increase demand and consumption thus increasing imports. The demand for British pounds will increase, while supply for British pound for sale will decrease, the equilibrium value of the British pound will increase thus signifying an appreciation in the value of British poundb. In speculating, the speculators who anticipate for appreciation of the currency will purchase the in store(predicate) contracts of the currency as opposed to those who anticipate the currencys decline who will sell currency future contracts of that currencyWhen the US based firm wants to lock its maximum price to be paid for euros in future, then the US firm whoremonger consider purchasing a call extract for euros. Similarly, when the US firm wants the price of its receivables to be lock at minimum prices for the euros, then the US firm can consider put option on euros.A speculator should purchase a call option of Australian dollar when th e Australian dollar is devalued and low compared