Business & Finance homework help

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Business & Finance homework help.

  1. How can government restrictions affect international payments among countries?

 

  1. When South Korea’s export growth stalled, some South Korean firms suggested that South Korea’s primary export problem was the weakness in the Japanese yen.  How would you interpret this statement?

 
3.There is an ongoing debate between the U.S. and China regarding whether the Chinese yuan’s value should be revalued upward. The cost of labor in China is substantially lower than that in the U.S.
 

  1. Would the U.S. balance of trade deficit in China be eliminated if the yuan was revalued upward by 20%? Or by 40%? Or by 80%?

 

  1. If the yuan was revalued to the extent that it substantially reduced the U.S. demand for Chinese products, would this shift the U.S. demand toward the U.S. or toward other countries where wage rates are relatively low? In other words, would the correction of the U.S. balance of trade deficit have a major impact on U.S. productivity and jobs? 

 

  1. 4. Biloxi Co. is a U.S. firm with a subsidiary in China. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Biloxi Co. has expected cash flows of $10,000,000 from domestic business and the Chinese subsidiary is expected to generate 100 million Chinese yuan at the end of the year. The expected value of yuan at the end of the year is $.13. What are the expected dollar cash flows of the parent of Biloxi Co. in one year?

 

  1. Would the agency problem be more pronounced for Berkley Corp., whose parent company makes most major decisions for its foreign subsidiaries, or Oakland Corp., which uses a decentralized approach?

 

Business & Finance homework help