Foreign project with a lower domestic currency npv
Business Management
1) Why would an entrepreneur find it desirable to hedge his or her foreign exchange risk?
2) Why would the managers of a firm take a foreign project with a lower domestic currency NPV and a higher return variance rather than a foreign project with a higher domestic currency NPV but a lower return variance?
3) What is the fundamental financing problem in international trade?
4) There are major natural resource deposits in the People’s Republic of China (PRC). How might a buyback arrangement work in which the PRC purchases earthmoving equipment from the Japanese firm Komatsu?
