finance

question 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.

e-activities for question 1

·  Use the Internet and / or the Strayer online library to research the reaction of business and accounting firms to both FASB 8 and FASB 52. Be prepared to discuss.

question 1 b

“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.

question 2

“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.

question 2b

“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.

e-activities for question 2b

Use the Internet or the Strayer Library to research a publicly traded company with which you are at least somewhat familiar, with a focus on how shares are listed on national exchanges. Be prepared to discuss.