1. Explain why so many international transactions require international trade credit facilitated by commercial banks.
2. Does borrowing a portfolio of currencies offer any possible advantages over the borrowing of a single foreign currency? If a firm borrows a portfolio of currencies, what characteristics of the currencies would be desirable from a borrowing firm's perspective?
3. One U.S. executive said that Europe was not considered as a location for FDI because of the euro's value. Interpret this statement.
4. Critically explain the IFRS and GAAP principles applicable for international accounting.