International Financial Management

Referencing Styles : APA

AssignmentTutorOnline

Question 1:
Discuss what you understand by the term ‘twin agency problem’.                 
Question 2:
Discuss and compare the shareholder wealth maximization model and the stakeholder capitalism model.
Question 3:
Classify the following as a transaction reported in a sub-component of the current account, or the capital and financial accounts of the countries involved:
•    An Australian company imports vegetables from a Chinese firm.
•    An Australian resident pays Singapore Airlines for a flight to Singapore.
•    A German investor buys some US treasury bonds.
•    An Indian firm pays the salary of its executive working for a subsidiary in Australia.
•    An Australian firm buys 100% share of a Japanese company.
Question 4:
Discuss what you understand by the term ‘impossible trinity’.
Question 5:
ABM Ltd. is an Australian software development company which wishes to purchase a laptop and is making a choice between two laptop manufacturers. A laptop manufacturer in Japan has quoted the laptop price to be ¥50,000, while a laptop manufacturer in the US has quoted the price of a similar laptop to be $400. The spot exchange rate for the US dollar against the Australian dollar is $0.76/A$, and the spot exchange rate for the US dollar against the Japanese yen is $0.0089/¥.