Reference no: EM133158865

Question 1.

Should companies hedge their exposures to foreign exchange risk? Discuss both views critically and state your recommendation. Use relevant research results to support your answer.

In this assessment, the following learning outcomes will be covered:

1. Demonstrate comprehensive knowledge of exchange rate systems and the interaction between exchange rates, interest rates and inflation

2. Appreciate the types of risks faced by investors and multinational companies

3. Apply and critically evaluate alternative techniques for managing foreign exchange risks

Question 2.

Topic: Attracting foreign direct investment (FDI) is considered one of the main challenges faced by economies. It is also one of the main factors that help develop the national economy since it contributes to increasing GDP growth rates in the host country, developing technical staff, creating jobs, transferring modern technology, and supporting competitive capacities. "Discuss the current investment environment in KSA, shed light on current legislations that are attractive for investment, and identifying the most important determinants of investment in KSA?"