StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

International Finance - Assignment Example

Cite this document
Summary
One is variations in the productive factors, which cause different countries to face different prices. The different prices across many countries cause international trade. There are many…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
International Finance
Read Text Preview

Extract of sample "International Finance"

Download file to see previous pages

The economy of Thailand is still in its nascent stage. The managed floating rate of exchange along with the Inflation Targeting framework has worked well for the country under consideration. The flexibility in the exchange rate helps the economy in absorbing shocks. With the adoption of the above exchange rate, Thai Baht moves in line with the economic fundamental. It was seen that the Baht/US dollar exchange rate have fluctuated widely from 36-56 Baht/US dollar. But the exchange rate in the past few years.

Blades Inc. wants to import many raw materials like plastic and/or rubber from Thailand. This would enable Blades to import them at much cheaper rate. Hence this would enable Blades Inc. to lower the cost of goods sold. Thailand is a weak economy and they are recovering from the effects which results in lower cost of goods. Importing from Thailand will help Blades Inc. in establishing long term relationship with the Thai suppliers. The company will definitely want to build a long term relationship so that they can make agreements with the suppliers in importing the costs at low prices.

Blades Inc. by importing raw materials from Thailand will help achieve economies of scale in the production process such that it enjoys special advantages from them. Again by achieving specialization in production efficiency, Blades Inc. will be able to achieve economies of scale and which will in turn lead to lower cost of the products. This will in turn increase the net income of Blades, Inc. With increase in sales, Blades, Inc. will have an impact on profitability together with lowering the unit costs.

Blades, Inc. will be able to sell roller blades in Thailand as the first firm. This will help the company to penetrate Thai market and thus they will be able to earn more profit for the company. If a situation comes where the US roller blades is saturated then exports in other countries will provide more opportunities

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Finance Assignment Example | Topics and Well Written Essays - 1250 words - 1”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1627809-international-finance
(International Finance Assignment Example | Topics and Well Written Essays - 1250 Words - 1)
https://studentshare.org/finance-accounting/1627809-international-finance.
“International Finance Assignment Example | Topics and Well Written Essays - 1250 Words - 1”, n.d. https://studentshare.org/finance-accounting/1627809-international-finance.
  • Cited: 0 times

CHECK THESE SAMPLES OF International Finance

The Prevailing Market Rate: Balance of Payment and Foreign Exchange

The paper describes one of the major distinctions between International Finance and its domestic counterpart.... International Finance refers to the examination of institutions and analysis of various cash flows of different countries.... International Finance is a key area in the international businesses that countries must always familiarize themselves with for successful existence in the market.... International Finance helps us to understand various consumption patterns of different economies....
5 Pages (1250 words) Research Paper

The Role of Geography and History in International Finance

EMPIRICAL EVIDENCE ON THE ROLE OF GEOGRAPHY AND HISTORY IN International Finance by Course University name Introduction The International economics is a field which is focused on the effects upon which the economic activities of international differences in consumer preferences, productive resources and the entire institutions that affect them.... In addition, the International Finance involves in monitoring the flow of capital across all the international financial markets and the impacts of these movements on rates of exchange (Maurice, 2008)....
7 Pages (1750 words) Assignment

The Analysis of the Globalization and Corruption

In addition, there is mention of the role of International Finance institutions and how they affect the prevalence of corruption or like of it.... It is therefore the role of this paper to look into corruption, globalization and International Finance institutions, and their relation to one another in corruption....
5 Pages (1250 words) Essay

The Future Student of the Harvard Law School

With my Bachelor's degree in Finance, and my keen interest towards the international law realms, I have undoubtedly looked into a number of law schools and found that Harvard Law School's PIF, being run by acclaimed professor Hal Scott is an exceptional blueprint, which offers a more comprehensive study of International Finance than any other law school.... My personal commitment towards improving the conditions in Tanzania and East Africa, as discussed in my personal statement, would greatly be facilitated by my studies of the World Trade Organization law and the United Nations law, besides International Finance and economics....
1 Pages (250 words) Scholarship Essay

The Loanable Funds Market and Government Expenditures

This indicates that when a country is suffering from national dept or budget deficits, it benefits the International Finance whereby it allows for financial exchanges.... Impact of the scenarios above on the international financeIt is clear from the case study that capital inflows and capital outflows are the two parts of the international capital account....
1 Pages (250 words) Assignment

Multinational Corporation Expansion

However, it has not yet ventured into Ugandan market due to several factors that has affected its attempt… One of these factors is characteristics of International Finance experienced in Uganda.... The International Finance has three dimensions, which are foreign exchange and political risks, market imperfection, and expanded opportunity set (Eun & Resnick, 2007).... Each of The International Finance dimension of political risks and foreign exchange encompass all the foreign exchange and political regulation put by a country to foreign investors....
6 Pages (1500 words) Essay

Finance Harm in Economic Growth

In the essay “finance Harm in Economic Growth," the author discusses the purchase of a shoe factory which is a debit entry in the capital account.... t is given by;= Exports –imports= 120,542- 108,227= 12,315b) Current accountIt shows a record of all transactions involving the exchange of produced foods and services and it is given by;Current account =balance of trade +investment receipts-investment payments=12,315+43,720-27,702=28,333 c) Switzerland became a larger international net creditor during the year because it had a trade surplus which implies that the country is able to pay for its imports and also to settle international debts....
2 Pages (500 words) Essay

International Finance (Compare between the current rate and The temporal method)

These include the current rate method and the temporal method as used in International Finance.... For the rest however there is an issue of exchanging the currency Comparison of the Current Rate Method and the Temporal Method in International Finance Due to the different currencies that are present in the world, there has been the need of the development of methods to aid in the translation of value of assets.... These include the current rate method and the temporal method as used in International Finance....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us