inflation‚ lessens the effect of exchange rate fluctuations and abrupt changes‚ but an alternative method would be to use the purchasing power parity (PPP) conversion factors of the International Comparison Program. To date‚ however‚ issues concerning methodology‚ geographic coverage‚ timeliness‚ quality and extrapolation techniques have precluded the use of PPP conversion factors for this purpose. This is when Human Development Index (HDI) comes into play. The HDI was created to highlight that people and
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macroeconomic view. We will discuss about GDPs ‚ PPPs‚ unemployment rate ‚ inflation rate of both the countries. Gross Domestic Product: Gross domestic product is the total value of goods and services produced inside any geographic region. There are two kinds of GDP indicators.1) Nominal GDP 2) GDP(PPP). As per 2010 data India has nominal GDP of $1.843 trillion and GDP(PPP) of $ 4.468 trillion while Pakistan has nominal GDP of $ 202.831 billion and GDP(PPP) of $482.913 billion. Indian GDP has 16-17%
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Fiscal Policy in Kenya: Looking Toward the Medium-to Long-Term By Kamau Thugge‚ Peter S Heller‚ and Jane Kiringai[1] Executive Summary Kenya’s authorities‚ in articulating their vision for the next two decades of Kenya’s development‚ understood clearly that fiscal policy would need to play a critical role in influencing the pace at which the economy will grow and its capacity to deal with the key challenges that will arise over the next several decades. Domestic policy challenges include
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The Internet Protocol (IP) is the principal communications protocol used for relaying datagrams (packets) across an internet work using the Internet Protocol Suite. Responsible for routing packets across network boundaries‚ it is the primary protocol that establishes the Internet. • An Internet Protocol address (IP address) is a numerical label that is assigned to any device participating in a computer network that uses the Internet Protocol for communication between its nodes. • Internet
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FI-555 International Finance Mid-Term Exam Guide Below is an outline of what is included in your test. Class notes‚ exercises and discussion along with homework problems should be enough. Reading book chapters will provide additional info if you feel you need it. 1. Globalization and the Multinational Firm • What’s special about international finance o Foreign Exchange Risk ▪ The risk that foreign currency profits may evaporate in dollar terms due to unanticipated
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Groupe Ariel SA Case Introduction Groupe Ariel SA of France is considering a project in Mexico. They need to analyze the net present value of the project‚ keeping in mind the exchange rates between Mexican Pesos and Euros in order to maximize their return. They also need to keep in mind the inflation rates over time and the risks involved with this type of investment. Analysis Number 1. Groupe Ariel is recycling old equipment in Mexico. They will need to use pesos to calculate their cash
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1.0 Introduction Chatime is one of the biggest milktea manufacturers in Taiwan. Chatime was first introduced in 2003.Chatime strategy by combining both high quality tea with Taiwanese bubble pearl bring a big success to Chatime and makes it becomes the market leader of milktea drinks in several countries. The success of Chatime can be seen by it has so many outlets‚ 800 franchises‚ all around the world. They are Taiwan‚ Malaysia‚ Indonesia‚ US‚ Uk‚ Australia and 12 other countries besides South
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expectation. | | 2. Purchasing power parity Purchasing Power Parity determines exchange rates in the long term. Any change in the differential rate of inflation between them tends to be offset over the long run. According to the comparable PPP data from OECD‚ the European currency bloc has been suffering a decrease in the recent Source: OECD (US=100) According to the relative purchasing power parity analysis‚ the EUR/USD exchange rage has been over-valued for about 10 percent. In the
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EXERCISES 1. Suppose that a treasurer of Apple has an extra cash reserve of USD 100.000.000 to invest for six months. The six-month interest rate is 8 % per annum in the U.S. and 7 % per annum in Germany. Currently‚ the spot exchange rate is USD/EUR = 1.01 and the sixmonth forward exchange rate is USD/EUR = 0.99. The treasurer of Apple does not wish to bear any exchange risk. Where should he/she invest to maximize the return? Investing in the US | Amount in USD | US | Amount in USD | |
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Democracy in Pakistan Posted on January 24‚ 2012 by admin786| Leave a comment Anwar Syed We hear almost every day some commentators saying that democracy in Pakistan is in danger of being overthrown by hostile forces‚ and further that the democracy we do have is not the genuine article. These observations will bear scrutiny. It is not clear who the foes of democracy are and what they expect to gain from its demise. One explanation may be that the army chief and the DG ISI‚ who have traditionally
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