MGMT3053: INTERNATIONAL FINANCIAL MANAGEMENT
- 2014
ASSIGNMENT II
DEMAN SID
Table of Contents
Introduction............................................................................................................................................. 2
Foreign Exchange Exposure .................................................................................................................... 3
Operating Environment ........................................................................................................................... 5
Interest Rate Parity .................................................................................................................................. 5
International Fisher Effect (IFE) .............................................................................................................. 6
Exchange Rate Forecast........................................................................................................................... 8
Bibliography ......................................................................................................................................... 10
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Introduction
Primal Nature Products is a Guyana-based international trading multinational corporation that
specialises in the manufacture of the Spotter® range of single-use disposable safety shoe liners.
The product is an all-natural barrier membrane solution worn over the socks with safety shoes
that offers the wearer a second layer of protection against skin contact by oil-based and waterbased fluids due to compromised footwear. The Spotter® liner is sold through Direct-to-you
Distributors, a Brazilian distributorship, to various manufacturing companies in that country.
The international trading form of multinational corporation (MNC) generally carries a low level
of risk as the firm does not place any of its capital at risk. If the demand for the firm’s products
declines in Brazilian...