--%>

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 : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

  • Q : Define the term Accounts Receivable

    Accounts Receivable: The money owed by customers (that is, individuals or corporations) to other entity in exchange for services or goods that have been employed or delivered, however not yet paid for. Receivables generally come in the form of operati

  • Q : REDUMPTION OF DEBENTURS WHAT IS

    WHAT IS REDUMPTION? AND WHAT ARE THE CONDITIONS?

  • Q : Creatives and Suites What happens when

    What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo

  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Matlab Applications in Image and Video

    Image and video processing is most difficult topic in electrical and electronics field. This topic becomes trickier if you are taking use of Matlab in this. Student faces a lot of problem in image and video processing theories. If you are messed up with same difficulties

  • Q : Historical Cost of Liabilities State

    State the Historical Cost of Liabilities?

  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?

  • Q : Incremental cash flow How the concept

    How the concept of lost sales can be related to the definition of incremental cash flow.

  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.