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Suppose that recently an emerging company of China engaged in manufacturing glass products established two outlets in the city of Karachi in Pakistan; the city with massive population. These outlets are very large and contain products which are purchased locally and also imported from abroad. As the company generates earnings beyond what it needs in Karachi, it may remit those earnings back to the China. Due to this increase in earnings, the company is likely to build additional outlets in Karachi or in other Pakistan cities in the future.
Question 1. Explain how the company outlets in Pakistan would use the spot market in foreign exchange.
Question 2. Explain how the company might utilize the international money markets when it is establishing other glass products related stores in Asia.
Question 3. Explain how the company would use international bond market to finance the establishment of new outlets in foreign markets.
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