Invest funds in a financial market

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Investing/borrowing in foreign financial markets.

a. Explain why an MNC may invest funds in a financial market outside its own country.

b. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

c. Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security.

d. Explain how the appreciation of the Japanese yen against the U.S. dollar would affect the return to a U.S. firm that borrowed Japanese yen and used the proceeds for a U.S. project.

Reference no: EM132975639

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