International Finance(英文版)(ppt 54页)

International Finance(英文版)内容提要：
Exchange Rates：
Example
You are doing a project in Germany which has an initial cost of $100,000.  All other things being equal, you have the opprtunity to obtain a 1 year German loan (in marks) @ 8.0% or a 1 year US loan (in dollars) @ 10%.  The spot rate is 1.4457dm:$1 The 1 year forward rate is 1.4194dm:$1
Which loan will you prefer and why?  Ignore transaction costs
Example
Harley Davidson builds a motorcycle for a cost plus profit fo $12,000.  At an exchange rate of 101.18:$1, the motorcycle sells for 1,214,160 yen in Japan.  If the dollar rises in value and the exchange rate is 105:$1, what will the motorcycle cost in Japan?

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