The M/S Milad Nor Company Essay

1) Read chapters 1 5 and review the PPTs we covered in crystalise. 2) Expect 5 or 7 short-answer questionsGeneral Questions 1. In class we reviewed trinity firms in ternary antithetical countries. The M/S Milad Nor accompany in Afghanistan, Caritex in Bulgaria, and Obod in Montenegro. Each company was confront 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 compargon to problems faced by similar firms in overmuch than developed countries? 2. Your storage market simulation calls for you to invest in securities with a significant presence outside the US debt, equity, commodities, currencies, derivatives In researching equities trading on exchanges outside of the US what similarities/differences have you found comp ared to firms trading on exchanges in the US? Chapter 11.The term globalization has become very widely employ in recent years. How would you defi ne it? 2.What does an MNE need in vagabond for it to create prise through the globalization process? 3.How does the concept of chief cityist economy actually apply to the globalization process of a business, as it moves from unproblematic to multi topic stages of development? 4. Define and explain the theory of comparative value5. Key to thought close theories is what they say and they dont. Name quatern or five key limitations to theory of comparative advantage. 6.Why have Eurocurrencies and LIBOR remained the centrepiece of the global financial grocery for so long? * These are home(prenominal) currencies of one country on deposit in a molybdenum country * The Eurocurrency markets serve two valuable purposes * Eurocurrency deposits are an efficient and at rest money market device for holding excess corporate liquidness * The Eurocurrency market is a major source of short-termbank loans to finance corporate working capital needs (including export and import financing) * LIBOR is the most widely accepted rate of interest used in interchangeable quotations, loan agreements, and financial derivatives transactions *7. Which assets play the most critical government agency 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 enlist efficiently.Chapter 21. How does self-possession alter the goals and governance of a business? unexclusive ownership may be wholly state-owned or partially publically 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 in private 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 riches maximization model. 4.Explain t he assumptions and objectives of the stakeholder wealth maximization model. 5.Define the following termsa.Corporate governanceb.Agency theoryc.Stakeholder capitalism6.In Ger legion(predicate) and Scandinavia, among some other countries, labor unions have representation on boards of directors or supervisory boards. How great power 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 fall in 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 system? 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 an d profitability of some salient(ip) firms located in emerging markets. What are some of the typical causas of these failures in corporate governance?p34 10. Do markets appear to be willing to lucre for good governance?p36 Chapter 31.Under the gold standard all national governments promised to follow the rules of the game. This meant defending a frozen exchange rate. What did this promise incriminate 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 wherefore it is true. 5.Fixed exchange rate regimes are sometimes implemented through a currency board (Hong Kong) or dollarization (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, xi member states of the European Union initiated the European Monetary Union (EMU) and accomplished 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 at last fail? 9.How did the Argentine currency board function from 1991 to January 2002 and why did it dissect? DEADChapter 41. Business managers and investors need BOP data to have a bun in the oven changes in host country economic policies that might be control by BOP events.2. From the perspective of business managers and investors list three proper(postnominal) 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 equilibrize?5. If the BOP were viewed as an accounting statement, would it be a balance planing machine 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 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 running a gradually increasing current account deficit. Why has this phenomenon occurred?Chapter 51. What were the three major forces behind 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 return 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 monarch butterfly debt ors of the Eurozone considered to have a problem that is different from any other firmly indebted country, like the United States?5. Why has the contingency of Portugal been termed a case of contagion rather than a sovereign debt crisis?6. What are the three elementary methods which might be used individually or in cabal to resolve the European debt crisis?