The M/S Milad Nor Company Essay

1) Read chapters 1 5 and review the PPTs we cover in class. 2) Expect 5 or 7 short-answer questionsGeneral Questions 1. In class we reviewed ternary firms in three diametric countries. The M/S Milad Nor Company in Afghanistan, Caritex in Bulgaria, and Obod in Montenegro. Each family was faced with different problems and issues. Please briefly summarize the similarities between the firms and their individual issues. How do the problems faced by these firms comp are to problems faced by similar firms in more developed countries? 2. Your stock food market make-believe calls for you to invest in securities with a significant presence outside the US debt, equity, commodities, currencies, derivatives In researching equities trading on replacements outside of the US what similarities/differences thrust you found compared to firms trading on exchanges in the US? Chapter 11.The verge globalization has become very widely apply in recent years. How would you define it? 2.What does an MNE need in order for it to create value through and through the globalization process? 3.How does the concept of capitalism actually kick in to the globalization process of a argument, as it moves from elemental to multinational stages of development? 4. Define and explain the hypothesis of comparative advantage5. Key to understanding closely theories is what they say and they dont. Name four or five key limitations to theory of comparative advantage. 6.Why have Eurocurrencies and LIBOR re master(prenominal)ed the centerpiece of the global financial marketplace for so long? * These are domestic currencies of one nation on deposit in a sanction agricultural * The Eurocurrency markets serve two valuable purposes * Eurocurrency deposits are an efficient and convenient bullion market subterfuge for holding excess corporate liquidity * The Eurocurrency market is a major source of short-term patois loans to finance corporate working capital needs (including export and import fi nancing) * LIBOR is the most widely genuine rate of interest used in standardized quotations, loan agreements, and financial derivatives transactions *7. Which assets play the most circumstantial role in linking the major institutions that make up the global financial marketplace? * The linkages are the interbank networks using currency. Without ready exchange of currencies the market is hard-pressed to operate efficiently.Chapter 21. How does ownership alter the goals and judicature of a business? Public ownership may be wholly state-owned or partially in public traded. State Owned Enterprises (SOEs) are created for business purposes rather than for regulation or civil activities. Private firms may be publicly traded (stock) or privately owned by partners or family. 2.Why is this separation so critical to the understanding of how businesses are structured and led? 3.Explain the assumptions and objectives of the shareholder wealth maximation model. 4.Explain the assumptions an d objectives of the stakeholder wealth maximization model. 5.Define the interest termsa.Corporate governanceb.Agency theoryc.Stakeholder capitalism6.In Germany and Scandinavia, among other countries, labor unions have representation on boards of directors or supervisory boards. How might such union representation be viewed under the shareholder wealth maximization model compared to the corporate wealth maximization model? 7.In many countries it is common for a firm to have two or more classes of common stock with differential voting rights. In the United States the average is for a firm to have one class of common stock with one-share-one-vote. What are the advantages and disadvantages of each agreement? 8.What are the key differences in the goals and motivations of family ownership of the businessas opposed to the widely held publicly traded business? 9.It has been claimed that failures in corporate governance have hampered the growth and profitability of some prominent firms loc ated in appear markets. What are some of the typical bms of these failures in corporate governance?p34 10. Do markets appear to be willing to pay for good governance?p36 Chapter 31.Under the gold standard all national governments promised to do the rules of the game. This meant defending a fixed exchange rate. What did this promise imply about a countrys money supply? 2.If a country follows a fixed exchange rate regime, what macroeconomic variables could cause the fixed exchange rate to be devalued? 3.What are the advantages and disadvantages of fixed exchange rates? 4.Explain what is meant by the term impossible trinity and why it is true. 5.Fixed exchange rate regimes are sometimes implemented through a currency board (Hong Kong) or sawhorseization (Ecuador). What is the difference between the two approaches? 6.High capital mobility is forcing emerging market nations to choose between free-floating regimes and currency board or dollarization regimes. What are the main outcomes of each of these regimes from the perspective of emerging market nations? 7.On January 4, 1999, eleven member states of the European Union initiated the European Monetary Union (EMU) and established a single currency, the euro, which replaced the individual currencies of participating member states. Describe three of the main ways that the euro affects the members of the EMU. 8.Why did the fixed exchange rate regime of 19451973 eventually fail? 9.How did the Argentine currency board function from 1991 to January 2002 and why did it interrupt? DEADChapter 41. Business managers and investors need jazz data to anticipate changes in host country economic policies that might be driven by BOP events.2. From the perspective of business managers and investors list three specific signals that a countrys BOP data can provide.3. What are the two main types of economic activity measured by acountrys BOP?4. Why does the BOP always balance?5. If the BOP were viewed as an accounting statement, would it be a balance sheet of the countrys wealth, an income statement of the countrys earnings, or a funds flow statement of money into and out of the country?6. What are the main component accounts of the current account? Give one debit entry and one credit example for each component account for the United States. adjust7. The US dollar has maintained or increased its value over the past 20 years despite caterpillar tread a gradually increasing current account deficit. Why has this phenomenon occurred?Chapter 51. What were the three major forces female genitals the credit crisis of 2007 and 2008?2. Why were LIBOR rates so much higher than Treasure yields in 2007 and 2008? What is needed to give way LIBOR rates to the lower, more stable rates of the past?3. What were the three key elements of the package used by the U.S. government to resolve the 2008-9 credit crisis?4. Why are the sovereign debtors of the Eurozone considered to have a problem that is different from any other heavily indebted country, like the United States?5. Why has the face of Portugal been termed a case of contagion rather than a sovereign debt crisis?6. What are the three primary methods which might be used individually or in combination to resolve the European debt crisis?