5. Agencies that facilitate international tradeWhich of the following is true about the Overseas Private Investment Corporation (OPIC)?OPIC does not provide services to exporters.OPIC insures direct U.S. investments in foreign countries against various types of risks.OPIC was formed in the later 1800's.Most OPIC loans are short-term.

OPIC, founded in 1971, also provides services to exporters and loans from 3 years to 15 years tenure.It provides political risk insurance and financing support to U.S businesses investing in foreign countries.It also encourages U.S private sector investment in emerging markets by mitigating the risks associated with such investments.So, OPIC insures direct U.S. investments in foreign countries against various types of risks is true.So, OPIC insures direct U.S. investments in foreign countries against various types of risks is true.

Answered: 5. Agencies that facilitate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Which of the following is a common sourde of export financing? a) A comercial bank loan b)Secured financing c)A loan from an EMC d)All the above
The U.S. government has at times offered temporaryfinancial support to struggling companies that were deemedsignificant to the national economy. Looking at GE’s portfolioof businesses, should the government consider helping GE?Why or why not?
Which of the following are reasons why an MNC might issue bonds in a particular foreign market? Check all that apply. There is stronger demand for bonds issued by the MNC in a foreign market as opposed to the domestic market. The currency in that foreign market is expected to appreciate against the MNC's home currency. There is a lower interest rate in that foreign country. The MNC intends to finance a project in a specific country and in a specific currency. If there is for a bond, a bondholder may not be able to sell a bond at the desired time or may have to decrease the price of their bonds in order to sell them. The risk of this occurrence is known as risk.
By 1780 or so, the British, French and Dutch sovereign debt finance systems had acquired distinct features. These included: a. Britain relied on financial markets. b. France relied on state bank financing. c. Netherlands relied on wealthy private bankers. d. Britain relied on tax farming. e. Netherlands relied on selling debt to the bank of Amsterdam. f. Other, specify.
Which of the following statements is NOT true? A. Debt contracts tend to impose more restrictions on the actions of the borrower than the lender B. Larger corporations have easier access to the securities market C. The financial sector is one of the least regulated industries in the US economy D. Collateral is used to secure debt contracts
Which of the following is true of the current state of financial regulation for financial institutions (FIs)? Most banks can transfer risk on a greater scale and in more complex ways than before. Most FIs now conduct virtual global business, reducing the influence of very large FIs. Most global financial money and capital markets are deliberately disconnected. Most securities exchanges have required majority ownership by resident nationals.
True/false : International Financial Management: 1. Forward contracts are often valued at £1 million or more, and are not normally used by consumers or small firms. (a) True (b) False 2. Governments may influences the equilibrium exchange rate by affecting macro variables such as inflation, interest rates, and income levels. (a) True (b) False 3. A forward contract is an agreement to buy or sell an asset in the future at prices agreed upon today. (a)True (b) False
What type of banking risk includes deterioration of the value of the local currency in terms of the bank’s base currency; convertibility or transfer risks. a. Credit Risk b. Liquidity Risk c. Foreign Exchange Risk d. Interest Rate Risk
Describe the importance of international capital structure. What risks can you identify when working with cash, credit, and inventory management? Discuss what risks apply when discussing strategies for financing a foreign operation? Provide your rationale and any supporting data. Consider how a Christian worldview perspective on personal debt may conflict with how a multinational company leverages debt to finance its operations and growth. Refer to the topic resources provided and support your position using specific Bible references.
What problemsarise when a multinational company operates in acountry whose currency is not convertible?
What is the role of regulators in the financial markets? Why are financial assets important to growth of an economy? In what ways do exchanges reduce contracting costs and risks? Is trading in an OTC market more risky for a trader than trading in an exchange? How so? What is the difference between Fed funds rate and the discount window rate?
15. Beginning in the 1980s, Interstate Banking became an important issue for banks and the companies they do business with. Finally, in 1997 the United States allowed nationwide banking. Explain the implications of nationwide banking for the banks and for the multination corporations that borrow from the banks.

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