Resnick Solution Manual

SUGGESTED ANSWERS AND SOLUTIONS TO
END-OF-CHAPTER QUESTIONS AND PROBLEMS
TABLE OF CONTENTS
Chapter
Globalization and the Multinational Firm Suggested Answers to End-of-Chapter Questions
International Monetary System Suggested Answers and Solutions to End-of-Chapter Questions and Problems
Balance of Payments Suggested Answers and Solutions to End-of-Chapter Questions and
Problems
The Market for Foreign Exchange Suggested Answers and Solutions to End-of-Chapter
Questions and Problems
International Parity Relationships Suggested Answers and Solutions to End-of-Chapter
Questions and Problems
International Banking Suggested Answers and Solutions to End-of-Chapter Questions and
Problems
International Bond Markets Suggested Answers and Solutions to End-of-Chapter Questions and Problems
International Equity Markets Suggested Answers and Solutions to End-of-Chapter Questions and Problems
Management of Economic Exposure Suggested Answers and Solutions to End-of-Chapter
Questions and Problems
Management of Transaction Exposure Suggested Answers and Solutions to End-of-Chapter
Questions and Problems
Management of Translation Exposure Suggested Answers and Solutions to End-of-Chapter
Questions and Problems
Foreign Direct Investment Suggested Answers and Solutions to End-of-Chapter Questions and
Problems
CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRM
SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS
QUESTIONS
1. Why is it important to study international financial management?
Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some