Looking at the opinion of Wong from Areca Capital, which forex exposures would be most relevant for the equipment-heavy companies and why? Explain the 3 (three) different ways these companies can hedge the forex exposure? Provide your recommendation on how these companies shall manage the relevant forex exposure identified earlier.
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- Question Covid 19 has caused an economic meltdown globally. Suppose, you are an owner of a popular export oriented readymade garments company in Bangladesh. How would your business have impacted due to the Corona outbreak? Answer the question based on your knowledge of product cost, period cost and CVP analysis ONLY.114-One of Oman based company is about to start investment in the international market. The company is very old in Oman but new in international market. It is also one of the requirements of the international market to shift accounting standards to International financial reporting standard. The company is not taking this task as challenge because a. Only terminologies will be changed b. None of the options c. The process does not require much efforts d. Training staff on shifting to this standard doesn't cost muchProactive international sourcing: Select one: O a. where there are more awareness of the opportunities for price reduction from buying overseas O b. Where There are no active sourcing from offshore suppliers Oc. Where there are lack of domestic supply of raw materials or components, forcing some international purchasing O d. where manufacturers and suppliers work together to establish an entire supply chain outside of the home country
- Microsoft is contemplating a change in its overseas pricing policy. Currently it is pricing its international sales in foreign currency. The price elasticity for Microsoft products is estimated to be 0.5. Would Microsoft be better off pricing in foreign currency? Explain.Pro Recently, Abercrombie & Fitch (A&F) began shifting a large portion of its Asian deliveries to the U.S. from air freight to slower , but cheaper ocean freight. Shipping costs have been cut dramatically, but shipment times have gone from days to weeks. In addition to having less control over inventory and being less responsive to fashion changes, the holding costs have risen for the goods in transport. Meanwhile, Central America might offer an inexpensive manufacturing alternative that might reduce shipping time through the Panama Canal to, say, 8 days, compared to, say, 25 days from Asia. Suppose that A&F uses an annual holding rate 30%. Suppose further that the product costs $20 to produce in Asia. Assuming that the transportation cost via ocean linear would be approximately the same whether coming from Asia or Central America, what would the maximum production cost in Central America need to be in order for that to be a competitive source compared to the Asian producer? The…Bulldogs Inc. wants to enter the global market. Which one may not be the reason in such decision? Production efficiency in other countries may result to economies and synergies that are favorable to the company To seek technologies not yet present in the home country To broaden market and increase shareholder value Essential materials and labor rates may be more expensive in other countries
- Jill is the CEO of Company Y, a clothing company. She wants to move from being 10 percent globalized to 90 percent globalized in the next 10 years. What are some possible drawbacks that Company Y must anticipate? Oa Rising wages may cancel out cost savings of access to low-cost input factors. Ob. None. All political and economic factors point to the rise of globalization Oc Governments may lower barriers to international trade Od. Improved communication technology may lead to longer production cycles.46 FDI often involves the establishment of new production tacilities in foreign countries such as Honda's Ohio plant. put of Select one: O True O FalseQuestion 1 You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately, you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market, and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?
- Consider a Japanese firm that sells product Y in the local market and contemplates sales to the US. If the Japanese firm enters the American market it will compete in quantities against a US firm already in the market. The inverse demand for Y in the US is Pus = 250 - Q (all prices and costs in this problem are in ŞUS), where Q = qu + qj, is total quantity eventually sold by the two competitors. The production of Y requires operating a plant at a fixed cost F = 300, as well as 1 unit of labor and 1 unit of capital per unit of output. Currently, at both the US and Japan the cost of capital is $15/unit and that of labor $10/unit. The Japanese firm has the option to either invest directly in operating a plant in the US, or use at no extra fixed cost its already existing plant in Japan, shipping its product to the US. In that case a transportation cost of $10/unit has to be paid on top of any production cost; also, American customs require a $5/unit duty for any Y imports. a) Find the…2. Imports and ExportsNow we allow for international trade. Use the following information from problem 1: C = 400 + (8/9)*DI I = 300G = 800T = (1/2)*Y. Suppose that exports are constant at X = 300.Let imports be a fraction of real income: M = (1/9) * Y. a. Give intuition for why imports M are positively related to national income Y in the equation above.b. Suppose that national income increases by $1. How much will spending on imports increase (the marginal propensity to import) in this case? c. Compute the equilibrium level of national income under international trade. d. Suppose that government spending increases by $120. i) Compute the new equilibrium national income. ii) Based on your numerical answer to (i), calculate the change in national income from a one dollar increase in government spending. iii) Derive the new fiscal multiplier from an increase in government spending using an algebraic equation. Compare to Problem 2.d.(ii). Compare to Problem 1.c.(v).e. Trade…f In addition to the risk factor identified in the preceding question, another risk factor relating to misstatements arising from fraudulent financial reporting is: Multiple Choice Earnings this year are lower than management had hoped. Accounts payable are limited to commercial suppliers. Sales are made to residential, commercial, and governmental purchasers. The industry faces great technological changes in almost all of its products. Untitled docume...pdf Untitled docume....pdf docx Presentation se...pdf Untitled docume...pdf MacBook Air