International finance/ case study question plus essay questions

timer Asked: Feb 8th, 2016

Question description

I have case study question, and other essay questions

Part 1.  Aspen Technologies Case Questions:

  1. Identify Aspen Technologies main exchange rate exposures.  Explain how Aspen Technologies’ business strategy gives rise to these exposures as well as to the firm’s financing needs.

  2. Calculate Aspen’s exposure for the past year.  Identify whether the firm is long or short for each currency exposure.

  3. Recommend a currency risk management program for Aspen Technology.

Aspen Technology.pdf

Aspen technology.xls

Part II: Short Essay Questions:

  1. Suppose the current trade imbalances disappear in the next decade.  Explain what will happen to capital flows if that occurs.  Identify and explain the factors that will contribute to the end of the trade imbalances and corresponding change in capital flows.

  2. Identify and explain the indicators of a country’s economic and political risks.

  3. Explain why a multinational company may have a lower cost of capital than a purely domestic company.

  4. Some forecasters believe that the foreign exchange market is efficient and forward exchange rates are unbiased predictors of future spot exchange rates. Explain what is meant by unbiased predictor in terms of how the forward rate performs in estimating the future spot rate.

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