Microsoft Word - Money, Banking, and Int Finance(scribd).docx

Money, Banking, and International Finance

Chapter Questions

1. How could a firm protect its business in a foreign country by using facility location,
   intellectual property rights, and leverage?


2. Which industries does a government usually protect?


3. How does a firm use export creation to reduce a country risk?


4. Define special dispensation.


5. You had purchased bonds from a country with a CCC credit rating. Calculate the expected
   interest rate you would charge if a comparable U.S. Treasury security has an interest rate of
   5%, and you use the average bps for this grade level.


6. What is the Risk Rating System, and which four factors are included in this system? Please
   explain whether or not the Risk Rating System is objective?


7. Distinguish between qualitative and quantities measures for measuring a country’s risk?


8. How would you rate Hong Kong using A.M. Best and Coface?


9. How would you rate the Ukraine using A.M. Best and Coface?