Primary types of foreign exchange transactions

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1. GDP per capita is the most frequently used measure of economic development. What are some of its weaknesses? What other metrics can be used to measure national income of countries? Give examples.

2. Who (what income groups) - gained the most and who gained the least from the recent (1990s and 2000s) wave of globalization. Consider the economic impact of globalization separately for Highly Developed Countries (HDC), Less Developed Countries (LDC) and Transition Economy Countries (TEC).

3. Explain, with the help of examples, the three primary types of foreign exchange transactions.

4. Test FOREX market IQ in predicting major FOREX rates 6 months into the future using the same three currency tables we used in class for the British pound, but now for the Japanese Yen. Provide predicted and actual Forward Premium or Forward Discount for this currency, annualized. Note: for the Japanese Yen, in forward rates table the quote is listed in dollars per 100 Yen, while in the other two tables it is listed in dollars per one Yen. Knowing in March 2016 what would happen to the Yen by September 2016 what FOREX trade(s) would you consider entering on March 16, 2016? Note: This question is mostly computational, so no recommended length for the answer to it.

5. In the last four years the US government has been conducting a major reform in the US trade relations with the outside world. What are the main components of this reform? Do you think they are justified? From the standpoint of American businesses what are their risks?

6. What US-made goods would you consider for export to Iran if and when the US trade embargo for this country is lifted? Give 3-4 examples. What logistical and insurance arrangement(s) would you use for actual exporting there? Use INCOTERMS table for your selection(s).

7. From the perspective of the US economy, what are the costs and benefits of the US foreign direct investment (FDI) in other countries? Provide 2-3 examples of US-based firms making such investment to support your arguments.

8. Land and Sea Incorporated would like your opinion about various countries as potential markets and investment sites. What general information can you share with them about assessing the overall attractiveness of a potential country as a market?

Reference no: EM133182881

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