Assignment question 1
There are many reasons for firms to become multinational enterprises (MNEs). The rationale stems from market
imperfections like seeking markets, raw materials, production efficiency, knowledge and political safety.
The March 2011 crisis in Japan (earthquake, tsunami and nuclear radiation) has affected Japanese MNEs outside
Japan as well as foreign MNEs in Japan.
Use the example of an actual American MNE in Japan to demonstrate your understanding of:
a. The rationale for this MNE to be in Japan in the first place.
b. If the crisis has adversely affected, and if so, how it has adversely affected this MNE’s rationale to
continue operations in Japan.
Students need to conduct research for this question. Plagiarized Work Will Be Penalized. (No Plagiarism)
Question 2 (Calculations) ( 2 pages for this )
A corporate foreign exchange trader obtained the following information from the market:
– USD interest rate : 2.0%
– AUD interest rate : 6.0%
– AUD/USD spot rate : AUD0.9700 per USD
– 6 month forward rate : AUD0.9900 per USD
Conduct the covered interest arbitrage to investigate the amount of profit achieved and the amount of loss
achieved. Use 10 million as the amount to be borrowed.
(Calculations part please help me do pyramid method.)
1. Your assignment should be type-written.
2. Spacing 1.5 with font size 12 using Arial script and justified.
3. Include Page No.
4. Include a reference Page at the end of your assignment.