Insert Title Here: Directions - Answer All Of The Questions

Insert Title Here 1directions Answer All Of The Questions Complete

Answer all of the questions completely and thoroughly using the information you learned in the module and outside research as support for your answers. Cite any and all references and sources you utilized. Each answer should be at least one to two substantial paragraphs in length. Note : Please visit the Academic Resource Center for concise APA guidelines. It should be clear from your reading of this chapter that a professional marketing researcher must possess a well-developed ability to write effectively.

Many colleges and universities offer a variety of programs designed to help students develop their writing skills. These programs may take a variety of forms, such as writing labs, special seminars, word processing tutorials, one-on-one writing tutors, and regular written communication classes. Prepare a one-page research report of the resources available at Allied American University that can be used to enhance written communication skills. Assume that your report will be furnished to incoming first-year students as part of their orientation materials.

The owner of a medium-sized home-building center specializing in custom-designed and do-it-yourself bathroom supplies requested the Liska and Leigh Consulting Firm to prepare a report on the customer profile of the bathroom design segment of the home-improvement market. Evaluate the following excerpts from the report. What questions and/or criticisms could be raised?

Research Report Excerpts

The customer market for the company can be defined as the do-it-yourself and bathroom design segments. A brief profile of each follows. The do-it-yourself (DIY) market consists of individuals in the 25-45 age group living in a single dwelling. DIY customers are predominantly male, although an increasing number of females are becoming active DIY customers. The typical DIY customer has an income in excess of $20,000, and the median income is $29,100 with a standard deviation of 86. The DIY customer has an increasing amount of leisure time, is strongly value- and convenience-conscious, and displays an increasing desire for self-gratification. The mean age of the custom bathroom design segment is 41.26, and the annual income is in the range of $55,000 to $65,000. The median income is $59,000 with a standard deviation of 73. The custom bathroom design customers usually live in a single dwelling. The wife is more influential and is the prime decision maker about bathroom designs.

Discuss the difference between conclusions and recommendations in research reports. Describe the information that should be contained in the executive summary and discuss why this is the most important part of the research paper. In presenting a report to a group of grocery store managers, a researcher stated the following: “The data from the judgment sample of 10 grocery stores were analyzed and the results show that the 95% confidence interval for average annual sales in the population of grocery stores if $1,000,000 +/- $150,000.” (a) As far as the audience is concerned, what is wrong with this statement? (b) Rewrite the statement, including all relevant information and corrections.

Additional Research and Resource Assessment

Be sure to include all the relevant information while correcting the problem. Most universities and colleges offer a variety of computer graphics software for students to use in campus microcomputer labs. Investigate the availability of graphics software available to you at Allied American University. Prepare a report outlining your findings, including:

  • Name of package and basic capabilities
  • Location(s) of access points
  • Name of contact person for further information
  • Any special skills required for use and availability of training if needed
  • Access fees or requirements (if any)
  • Any other important information related to the resource

Chapter 6: Intervention with Euros: Assume Belgium, which uses the euro, prefers to see its currency depreciate against the U.S. dollar. Can it apply central bank intervention to achieve this? Explain.

1. Indirect Intervention: Why does the Fed’s indirect intervention have a stronger impact on some currencies than others? Why would a central bank’s indirect intervention have a stronger impact than direct intervention?

2. Intervention Effects on Corporate Performance: Suppose you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers, financed mainly through local bank loans, and purchases all materials from Hong Kong, where the dollar is fixed to the U.S. dollar. The subsidiary borrows from the U.S. parent, paying $100,000 monthly interest. Australia raises interest rates to strengthen its dollar, which causes the Australian dollar (A$) to appreciate against the U.S. dollar. Explain how this affects:

  1. The volume of sales in Australia
  2. The cost of materials in A$
  3. The interest payments in A$

Chapter 7: Assume bid and ask prices for the New Zealand dollar are $.401 and $.404 (bid and ask at Yardley Bank) and $.398 and $.400 at Beal Bank. Is locational arbitrage possible? If so, describe the steps and compute the profit if you start with $1,000,000. How would market forces adjust the prices to eliminate arbitrage opportunity?

Triangular arbitrage: Given the exchange rates ($.90 for Canadian dollar in USD, $.30 for NZ dollar in USD, and NZ$3.02 per Canadian dollar), is arbitrage possible? Show how and calculate profit on $1,000,000, then describe market eliminations.

Covered Interest Arbitrage: The one-year interest rates are 6% in New Zealand and 10% in the U.S., with the spot rate at $.50, and the forward rate at $.54. Is arbitrage feasible for U.S. and New Zealand investors? Provide reasons.

Interest Rate and Forward Rate Adjustments: If the U.S. interest rate is 6%, Germany’s is 8%, the euro spot rate is $1.10, and the forward rate also $1.10, how will the forward rate change to restore interest rate parity? Explain which investors will buy or sell forward and why.

Canadian dollar: Given the 1-month interest rates in Canada and U.S. (Canadian rate lower), and a monetary policy change in the U.S. lowering its rate further, describe how the forward rate will exhibit a premium or discount and how this will change.

Chapter 8: PPP, IFE and Inflation Dynamics

1. Explain the theory of Purchasing Power Parity (PPP). What is a typical forecast for currencies in high-inflation countries based on PPP?

2. Why does PPP often not hold? Discuss factors that prevent perfect alignment between inflation and exchange rates.

3. Describe the International Fisher Effect (IFE). What is its rationale, and how does it affect firms investing in foreign Treasury bills? Why might IFE not always be valid?

4. Russian inflation: Russia’s hyper-inflation exceeding 20% per month causes the ruble to weaken. Explain why. How does it support PPP? How might political conditions distort the expected movements? How will Russian prices compare to U.S. prices after considering exchange rates? How will U.S. importers be affected?

5. IRP and Forward Rates: With Mexican interest rates at 10% and U.S. at 2%, a spot rate of $.14, compute forward premium, forward rate, expected change per IFE, and compare the expected future spot rate. Explain the relationship if IRP holds.

6. Speculation in foreign exchange: U.S. investor Ed and Mexican investor Maria attempt to profit with different strategies involving the peso. If IRP and IFE hold, compare their expected returns and explain why.

References

  • Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of Corporate Finance (13th ed.). McGraw-Hill Education.
  • Fabozzi, F. J., & Modigliani, F. (2009). Foundations of Financial Markets and Institutions. Pearson.
  • Fischer, S. (1930). The Theory of Interest. Macmillan.
  • Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics (11th ed.). Pearson.
  • Mishkin, F. S. (2019). The Economics of Money, Banking, and Financial Markets (13th ed.). Pearson.
  • Madura, J. (2021). International Financial Management (13th ed.). Cengage.
  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance (12th ed.). McGraw-Hill Education.
  • Shapiro, A. C. (2017). Multinational Financial Management. Wiley.
  • Valadkhani, A., & Chan, C. (2019). Exchange Rate Dynamics and Middle East Economic Integration. Journal of Economic Integration, 34(2), 245–264.
  • World Bank. (2020). World Development Indicators. https://databank.worldbank.org/source/world-development-indicators

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