Choose a country (not the United States or Canada) and post your country choice
ID: 2634081 • Letter: C
Question
Choose a country (not the United States or Canada) and post your country choice in the discussion area. Then, identify some political and currency risks of that country and discuss why a U.S. company would invest (for example, build a factory) in that country. Also discuss some of the various international finance topics such as the foreign exchange market, purchasing power parity, interest rate parity, cross rates, and so on. Why is it important for international firms to understand these concepts?
Explanation / Answer
Here to discussion I have taken Inida as example.
India is the one country which is having huge investment opportunities for global investors. Majority of the customers are existed in India for every product or services.
And India is the one country which is having a high growth rate (GDP) than any other country for a long while.
If US people invests in India, they can get huge profits.
The established government is a stable one, and there are no chances to raise political crisis in India in coming 5 years.
when you are dealing with multi currencies, you should have kean knowledge of each of them.
because in this changing conditions any thing may happen which collapse you or helps you.
Even here interest rates are also high with compare to any nation and investments are safe.
Purchasing power parity calculates different nations currencies value.