Define comparative advantage related to currency swap market, Financial Management

Assignment Help:

How does the theory of comparative advantage relate to the currency swap market?

Answer:  Name recognition is very important in the international bond market. With no it, even a creditworthy corporation will find out itself paying a higher interest rate for foreign denominated funds as compared to a local borrower of equivalent creditworthiness.  Accordingly, two firms of equivalent creditworthiness can every exploit their, respective, name recognition by borrowing in their local capital market at a favorable rate and after that re-lending at similar rate to the other.


Related Discussions:- Define comparative advantage related to currency swap market

Determine the factors of auditors, Determine the factors of auditors Wh...

Determine the factors of auditors When anticipating to apply analytical review as a substantive procedure, auditors determine a number of factors like: Factor

Partial correlation coefficients , In multiple correlation equations we are...

In multiple correlation equations we are often interested in finding out how much of the variation in the dependent variable is explained by one independent variable if all the oth

Hedging strategy, Crown Co. is expecting to receive 100,000 British pounds ...

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk

Credit analysis of non-corporate bonds, Like corporate bonds, non-cor...

Like corporate bonds, non-corporate bonds such as asset-backed securities, mortgage-backed securities, municipal bonds, sovereign bonds are also exposed to credit

What the term objective denotes- financial management, What the term object...

What the term objectives denotes- financial management It must be noted at the outset that term 'objective' is used in the sense of a goal or decision criterion for three decis

Fin 534 financial management homework solutions to c, Need help with explan...

Need help with explanations for the answers chosen, not good with math calculations, or explaining the answers, can you help with this.Chapters 6, 8

Cost of retained earnings and external equity, Expalin the basic concept of...

Expalin the basic concept of financial management and Cost of Retained Earnings and External Equity??? Also explain the hoe can ew calculate the external equity? Help me

Budget, Details on budgetary control process

Details on budgetary control process

What are the characteristics of an efficient market?, What are the characte...

What are the characteristics of an efficient market? The term market efficiency denotes to the ease, speed, and cost of trading securities. In an efficient market the securitie

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd