Oman Air Company is very popular in the airlines industry. For the sultanate of Oman, the Oman air is considered as flagship carrier and also known as 4-star airlines. This airline plays an important role in making the Muscat as a major hub of traffic for the middle east that …

According to Forbes magazine, Apple is on the brink of becoming the first organization to reach a net worth of approximately $1trillion. This is not due to mere luck, but it involves fervent dedication with a combination of strategic processes pertaining to different functional areas, especially operations management. Apple is …

The Amazon is the leading e-commerce retailers all around the world. The main reason behind the success of the Amazon is their innovation and quality of services that they are providing in the market. The overall price strategies of Amazon Company are quite innovative and they also have to go …

Peck took the decision of firing his creative directors because he was not satisfied with the job creative directors as case study presents that directors were not showing the efforts from last many years through which company could increase sales rapidly. In fact, Gap was looking for the next saviors …

Solution Amount 10000000 will be converted into dollarsCalculate your profit resulting from the preceding arbitrage strategy. As the main currency is Canadian Dollar the profit is evaluated in CAD                             

The relevant mathematical formulation for linking the four prices is the IRP (Interest Rate Parity) theorem:                          In the theorem S stand for spot rate, F stand for forward rate, IF stand for the interest rate of foreign currency and …

        There are no major difference in managing FX exposure in North America & Asia. The corporation has invested in US and Asian countries. However company increase it’s purchasing in US dollars especially in North American region (Melville 2017).Why did BMW decide to consolidate FX risk management globally in its Munich …

In recent years BMW have experienced massive growth. India, Russia, China and Europe becomes the largest market for the company. Due to the exchange rate changes the profit of the company often experience decline. By moving production facilities to various countries not only foreign exchange risk is managed appropriately but …

There are many foreign exchange risks which the WMC was facing in its operations. The first risk is the transaction exposure. As most of the transactions of WMC involve US dollars. The second major foreign exchange risk exposure faced by the company is economic exposure. The transaction exposure risk & …

There are many advantages of hedging techniques. Some of the key advantages are mentioned below:Hedge allow the organizations or businesses to manage the harsh market conditions.Through hedging techniques profit can be locked by the companiesUsing options and futures for managing short term risk is a good strategyThrough hedging the company …

        The realistically available alternatives for Aeroflot to make payment other than airline services revenue are to promotion of tourism and revenue generated from the oil industry in Russia. Company can earn revenue through investing in the energy sector as it is one of the most important sector in the Russia.Which …

        LOOP (LAW of one price) explains that if no trade frictions e.g. tariffs exist and there is free competition in the market than same goods in different countries should be sold on same prices when express common currency. This law is the basis of purchasing power parity theory.  Purchasing Power …

        Pegged exchange rate is known as one the most important type of exchange rate regime in which the key consideration is that currency value should be fixed against the value of other currencies (the currency of other countries). While on the other hand, the floating exchange rate is a regime …

Relative purchasing power parity explains the association between the two country’s inflation rates in specific period of time. The formula of relative purchasing power parity is:                             Are implied forward rates good predictors of future spot rates? Explain.The …

Short Questions & DefinitionsQuestion: 1a)     Define and give an example of relative purchasing power parity.Relative purchasing power parity explains the association between the two country’s inflation rates in specific period of time. The formula of relative purchasing power parity is: b)      Are implied forward rates good predictors of future …

 Question: 1              In accordance to the international laws and regulations regarding sources of income and interest, the interest amount paid through the foreign commercial banks or any other saving financial institute are to be considered as the foreign source income (Law.cornell.edu, 2019). while if more than 80% of the total …