Scenario: manufacturing company that is deciding whether to expand into Brazil or India. Resource: Investment Decision Selection Paper
Prepare a 1,750-2,250-word paper.
Analyze the impact of the foreign exchange and derivatives markets on your organization and countries in which the organization is considering expansion.
Describe the impact of exchange rate convertibility, bid-ask spreads, real exchange rates, and the interest rate parity on the relative investment attractiveness of the countries in your scenario.
Answer the following questions in your paper:
· Does purchasing power parity hold? What is its significance? DONNIKA INTRO and CONCLUSION PUTTING OF PAPER TOGETHER
· What happened to the value of the real exchange rate over time? What is the significance of this change in value? – Teana *and* I will volunteer to take any data (from anyone’s sections) that would be better. presented in spreadsheet/chart format and create those to insert into the paper!
· What are bid-ask spreads for each currency? Include your calculations. TIM
· What are implications of the absence or presence of a forward exchange market? TIM
· Does interest rate parity hold? What is its significance? – Aliy –
What international arbitrage opportunities exist in your organization? How may the organization take advantage of these for profit? – Aliy
Cite data sources you used for calculations. If you used an electronic source, include the URL. If you used a print source, attach a copy to your paper.
Format your paper consistent with APA guidelines.