Use the globalEDGE™ site to complete the following exercises:
1. In general, your current position in a company
based in the United States requires you to keep updated
on trends in the foreign exchange market. As
such, a recent capital project will require a significant
greenfield investment in Japan. Download the
most recent forecast that analyzes the U.S. dollar
and Japanese yen and prepare a brief report. What
particular trends must your company keep in mind
while continuing with this investment project? Are
there any dangers you should keep aware of in the
near future?
2. As an entrepreneur, you are interested in expanding
your business to either Sweden or Turkey. As part of
your initial analysis, you would like to know how much
minimum investment is needed to enter each of these
markets. To have an appropriate estimate, you hire a
consulting firm to perform an initial investment analysis.
The consulting firm provides a short report concerning
the level of minimum investment needed for each country.
Taken from the report, the minimum investment
amounts enclosed are: one hundred million Swedish
krona and forty-five million Turkish lira. To make a clear
comparison by using current exchange rates, you must
convert each currency to U.S. dollars and suggest
which country provides the better investment.
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