Solved Questions

If the net baht received from the Thailand subsidiary are invested in Thailand, how will U.S. operations be affected?

If Logan invests the excess cash in U.S. Treasury bills, would this reduce the firm's exposure to exchange rate risk?

Optimal Use of Cash in Foreign Countries Write a short essay to explain whether the low interest rates may cause MNCs to make better use of their funds. What is an obvious alternative use of funds in a foreign country that an MNC would likely consider? Why might the MNC continue to just maintain funds in cash accounts (earning very low interest) ra...

There is a trade-off between the higher interest rates in Thailand and the delayed conversion of baht into dollars. What does this mean?

Investing Strategy Should McNeese Co. consider investing funds in Latin American countries where it may expand facilities? The interest rates are high, and the proceeds from the investments could be used to help support the expansion. When would this strategy backfire?