a) Troop Inc. (US) has decided to build a new factory in India. Explain the benefits of subsequently borrowing in India rather than in the US. b) Explain the options available to Troop Inc. to raise equity in international financial markets and suggest potential advantages from cross-listing on the Indian stock exchange. c) Explain what is meant by a segmented market and an illiquid market and what circumstances may cause them to arise.

a) Troop Inc. (US) has decided to build a new factory in India. Explain the benefits of subsequently borrowing in India rather than in the US. b) Explain the options available to Troop Inc. to raise equity in international financial markets and suggest potential advantages from cross-listing on the Indian stock exchange. c) Explain what is meant by a segmented market and an illiquid market and what circumstances may cause them to arise.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

3. The rise of securities markets and the expansion of intermediation by nonbanks has come partly at the expense of commercial banks. Plot the ratio of bank credit (FRED code: TOTLL) to debt securities owed (FRED code: ASTDSL), and comment on the trend.
1. Why should BPI (Bank of the Philippine Islands) acquire or merge with RB (Robinsons Bank)?
A key dynamic within any Multi-National Corporation (MNC) is cash and foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics, especially since COVID-19. Within the Caribbean and North American jurisdiction, the economic framework is tightly connected with the major Asian economies of China, the United Kingdom and Japan. The Caribbean and the North American economy have been a barometer of the global economic cycle.) For both Caribbean and North American economies, many Multi-National Corporations have made significant investments to reduce the production cost of goods and diversification benefits. Despite the benefits that could materialize, some North American countries have not been resilient through Global market shocks. Given this context, the following questions require research within the Caribbean context and current market dynamics since COVID-19. Your Manager has asked you to address the following concerns in the report 1)…
Identify and briefly discuss five (5) reasons for adding international securities to the investment portfolio and five (5) problems associated with such an approach.
Trinidad and Tobago Stock Exchange is an example of which of the following; a.Commodity market b.Over the counter market c.Money market d.Organized secondary market
“Because diversification is a desirable strategy for avoiding risk, it never makes sense for a bank to specialize inmaking specific types of loans.” Is this statement true,false, or uncertain? Explain your answer
1.Explain the way Indian Capital Markets is organized. Over the last 3 decades various reforms have taken place to make the capital markets in India more and more structured and scam-free. Explain any five such significant reforms 2. Describe how the prevailing interest rates in a country affect its exchange rates with the currency of its major trading partner
With aid of diagrams, your individual submission, should discuss in detail the following three important exchange-based modes of retail finance conducted by Islamic Banks in South-Asia and the Middle East;(i) Murabaha(ii) Bai’ al-Inah (e.g. Bai Bithaman Ajil – BBA)(iii) Tawarruq (Reverse Murabaha / Commodity Murabaha)In your answer, (a) discuss the various rules and issues related to each of the modes of finance, (b) illustrate and explain the mechanics of each transaction in terms of legal form, and also (c) give your opinion in terms of economic substance (with regard to the Islamic normative theory of profit).
The GMO Emerging Markets Fund concentrates in investing in the world's emerging stock markets. Mr Liam, an experienced international investment and finance professionanl and is actually interested in the Mexicans stock market. Based on your understanding of the efficient market strategy and hedging, assess the claim that "changes in exchange rates impact contract settlement, business valuation, and cash flows." And kindly advice and recommend Mr Liam on the potential implications for GMO emerging market funds.
Market interest rates are determined A) by banks. B) by the New York Stock Exchange (NYSE). C) only by the demand for loanable funds. D) only by the supply of loanable funds. O E) by both the demand for and supply of loanable funds.
(b) Using example, discuss how Bai Al-Inah eliminates the element of riba in conventional financing.
Other 1. Bank Capital Requirements Descriptions (How is policy formulated and implemented in INDONESIA) Implications/Outcomes/ Goals