Multinational Corporation
QUESTIONS
For each of the main foreign currencies used by the MNC, describe the level of volatility of the currency and the level of government intervention, if any. How have these factors influenced the MNC’s business, especially over the past financial year? 6 marks
Using actual rates for the main currencies where the MNC conducts international business illustrate and determine if any type of arbitrage is possible (locational, triangular and covered interest). 9 marks
