strayer university ITB400 week 1 to week 6 discussions [ total 12 discussion each week 2 ]

Week 1 diss 1

"Globalization and the Multinational Firm" Please respond to the following:

· Some people have objected to the creation of NATFA, arguing that the U.S. would lose jobs to Mexico where labor costs are significantly lower. Provide an argument either for the expansion of NAFTA or for its dissolution.

· Determine this single most significant concern regarding globalization for multinational firms. Provide specific examples to support your response.

Week 1 discussion 2

International Monetary System" Please respond to the following:

· From the first e-Activity, determine how the economics of Greece, Italy, Spain and Portugal have contributed to a global economic crisis. and how the global impact of such economies can be mitigated in the future. Provide specific examples to support your response.

· From the second e-Activity, discuss how being tied to a single currency (the Euro) has impacted the different economies of the European Union. Provide specific examples to support your response.

Week 2 dissn 1

"Balance of Payments" Please respond to the following:

· Compare and contrast the continuous current account deficits of the U.S. with the continuous current account surpluses of Japan. Discuss the likely consequences for both countries if the deficit and surplus roles are reversed in the next 10 years.

· Analyze the possible strengths and weaknesses of SDRs versus the dollar, and determine if the SDR should or could replace the U.S. dollar as the main global reserve currency.

Week 2 diss 2

"The Market for Foreign Exchange" Please respond to the following:

· Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in many instances for hedging purposes. Discuss how a bank may mitigate the currency exposure it has created for itself by accommodating the clients’ forward transaction.

· Create a list of three best practices for reading spot market quotations, deriving cross-rate quotations, and leveraging the concept of triangular arbitrage as a means of ensuring market efficiency.

Week 3 disn 1

"International Parity Relationships and Forecasting Foreign Exchange Rates" Please respond to the following:

· From the e-Activity, discuss the implications of the deviations from purchasing power parity for countries’ competitive positions in the world market.

· Researchers found that it is very difficult to forecast future exchange rates more accurately than the forward exchange rate or the current spot exchange rate. Examine the underlying factors behind these findings and make at least two (2) recommendations for improving the forecast of future exchange rates.

Week 3 diss 2

"Futures and Options on Foreign Exchange" Please respond to the following:

· Compare and contrast the basic differences between the operation of a currency forward market and a futures market.

· Discuss how the FX call and put option model pricing can change with respect to European option-pricing relationships.

Week 4 disccn 1

"Management of Transaction Exposure" Please respond to the following:

· Discuss and compare hedging transaction exposure using the forward contract versus money market instruments.

· From the first e-Activity, determine the best way to leverage a currency options contract as a hedging tool compared with a forward contract. Provide specific examples to support your response.

Week 4 dissn 2

"Management of Economic Exposure" Please respond to the following:

· General Motors exports cars to Spain, but the strong dollar against the euro hurts sales of GM cars in Spain. In the Spanish market, GM faces competition from Italian and French car makers, such as Fiat and Renault, whose operating currencies are the euro. From the second e-Activity, determine the best course for GM to take to maintain its market share in Spain. Explain your rationale.

· Discuss the advantages and disadvantages of maintaining multiple manufacturing sites as a hedge against exchange rate exposure.

Week 5 dissn 1

"Management of Translation Exposure" Please respond to the following:

· From the e-Activity, discuss the most significant ramifications of FASB 8 and FASB 52 on U.S. business and accounting firms. Provide specific examples to support your response.

· Generally, it is not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other. But in other cases, the elimination of one exposure actually creates the other. Discuss which exposure is the most important to manage if a conflict between controlling both arises. Explain your rationale and provide at least two examples to support your response.

Week 5 discunn 2

"International Banking and Money Market" Please respond to the following:

· Compare and contrast the deposit-loan rate spread in the Eurodollar market with the deposit-loan rate spread in the domestic U.S. banking system.

· Determine and discuss how the major factors of the credit crunch beginning in the U.S. in 2007 blossomed into a global financial crisis. Explain your rationale.

Week 6 diacunn 1

"International Bond Market" Please respond to the following:

· Suppose you had $20 million U.S. to invest in the international bond market. Describe how you would invest your money and provide the rationale behind your chosen investments.

· Discuss the benefits and the drawbacks of investing in the Eurobond market when compared to other international markets. Provide examples to support your response.

Week 6 discunn 2

"International Equity Markets" Please respond to the following:

· From the e-Activity, determine if the company you researched would benefit by cross-listing its equity shares on more than one national exchange. Explain your rationale.

· Create a list of 2 to 3 best practices for investors who wish to diversify their portfolio internationally. Explain your rationale.