International Business Case Study

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Sir Powers 10/26/16 International Business Chapter 8&9 key questions foreign exchange market instruments Chapter 8 Key questions: 1. A key point in taking a company international is arbitrage or taking advantage of a price difference. Take for instance Samsung in China. They are dominating the market against their rival Apple 3-1. Apple introduced a cheaper international version of the iPhone in response but is losing its high-end market to Samsung. Samsung mobile devices are the first choice among corporate executives. Also, politically, Chinese officials are familiar with Samsung products with a committee following its moves. However, the Chinese media is increasingly critical of Apple. Secondly, even though the Chinese market knows that Samsung is Korean, they have targeted a niche market in the world’s largest economy. 2. Another key point in taking a company international is carry trade which is a form of exchange arbitrage. An example of carry trade is to…show more content…
There has been a significant increase in depth and liquidity in forward market segments, which rise in the average daily forex market turnover from 16 billion USD in 2005 to 55 billion USB in 2015. In the integration of Indian financial market with international markets, the Reserve Bank of India to market development has been that of cautious and informed by the experience of other developed and developing countries. Even within the constraints imposed by this approach, the Reserve Bank and the India Government have taken steps that include progressive liberalization of capital flows, calibrated increase in investment limits for Foreign Institutional Investors in government and corporate debt, introduction of Qualified Foreign Investor as a separate investor class, expansion of the menu of risk management instruments,

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