During the past decade, the areas of greatest worldwide growth in the financial markets have occurred in O a. China, South Africa, and Argentina b. China, Brazil, and the United States O c India, Brazil, and South Africa O d. China, the United States, and Saudi Arabia O e. Saudi Arabia, India, and Argentina

Globalization has led to the progressive integration of capital markets around the world, allowing worldwide investors and corporations to trade with or in other countries. The following table provides descriptions of certain transactions or situations. Based on your understanding of international capital markets and international money, choose the best term to match each description Description South Korean wons are deposited in a bank in Brazil. A U.S. corporation starts a greenfield project in Mexico. This is the tied interest rate on a Eurodollar deposit in Europe. This type of bond is issued by a European company, denominated in U.S. dollars, and sold to investors in Japan. Term

A US firm does business in Australia.  In attempting to assess its economic exposure, it compiled the following information: Its U.S. sales are somewhat affected by the value of the Australian dollar (AU$), because it faces competition from Australian exporters.  It forecasts the U.S. sales based on the following three exchange rate scenarios:   Revenue from U.S. Business Exchange Rate of AU$ (in millions) AU$ =  $.70 $100 AU$ = $.75 105 AU$ =  $.80 110 Its Australian dollar revenues from sales in Australia invoiced in Australia dollars are expected to be AU$600 million Its anticipated cost of materials is estimated at $200 million from the purchase of U.S. materials and AU$100 million from the purchase of Australia materials Fixed operating expenses are estimated at $30 million Variable operating expenses are estimated at 20% of total sales (after including Australian sales, translated to a dollar amount) Interest expense is estimated at $20 million on existing U.S. loans, and the…

Based on the information provided in the table below, calculate the contribution to total performance from currency, country and stock selection for the manager. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. Dollar. EAFE Weight Return on Equity Index (%) Currency Appreciation E1 / E0 - 1 Manager’s Returns Manager’s Weight (%) Europe 0.3 10 10 0.35 8 Australia 0.1 5 -10 0.10 7 Far East 0.6 15 30 0.55 18