--%>
Assignment Help - homework help

Theory of the comparative advantage

How theory of the comparative advantage relates to the currency swap market?

E

Expert

Verified

Name recognition is really important in international bond market.  Without it, even the creditworthy corporation will find itself paying the higher interest rate for foreign denominated funds as compared to the local borrower of equivalent creditworthiness.  Consequently, two firms of the equivalent creditworthiness can each exploit their respective name recognition by borrowing in their local capital market at a favorable rate and then re-lending at same rate to the other.

   Related Questions in Financial Accounting

  • Q : Essay topics related to Religion I have

    I have some problem related to Essay topics which are related to Religion which are illustrated below: Topic A:What are the qualities of the ‘perfect&rsq

    		•
  • Q : Swap broker and swap dealer State the

    State the difference between the swap broker and the swap dealer.

    		•
  • Q : Average Profit Method in goodwill

    Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of

    		•
  • Q : Restrictions of standard costing Write

    Write down the restrictions of standard costing?

    		•
  • Q : Financial report Details of Assignment

    Details of Assignment : You are required to form a team (group) of 3 to 4 m embers. Let your lecturer know the names of your team members. Select a set o f financial statements for a group of companies and obtain approval from your le cturer for the group of companies that you have selected.

    		•
  • Q : Objectives of Bretton Woods’s system

    State main objectives of Bretton Woods’s system?

    		•
  • Q : Abnormal profits Atypically large

      Atypically large proceeds made by an individual or company from commercial activity. An abnormal profit exceeds the normal chance for profit derived from labor costs and capital and considered normal profit. Abnormal profit in a business resides of monopoly and consortium profits.

    		•
  • Q : International portfolio for buying

    Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?

    		•
  • Q : Case study of a wind turbine for rural

    The goal of this long problem is to validate the turbine performance estimates in specific (XYZ) wind regimes, and estimate its cost.  Below is a list of tasks you will need to accomplish, but you are not limited to these if you want to do more:  

    		•
  • Q : Financial institutions & Economic growth

      It started with the US sub-prime mortgages on housing loans, which became worthless when home owners defaulted on their loans. The housing market promptly collapsed, wiping out Wall Street's revered investment banks and pull

    		•