In the analysis of emerging market sovereign bonds, why is geopolitical significance important?
What will be an ideal response?
Traditionally, the term has applied primarily to the impact of geography on politics, but its usage has evolved over the past century to encompass wider connotations. The Free Dictionary defines geopolitics as "The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation."When an emerging market country faces a major credit crisis, geopolitical significance becomes important. When a credit crisis occurs in an emerging market country that is perceived to have major global repercussions, industrialized countries and supranational agencies have stepped in to commit significant resources to prevent an economic collapse and political instability for that country.Therefore, geopolitical significance is an important political factor to consider.
You might also like to view...
What challenges do entrepreneurs face as they get their companies off the ground?
What will be an ideal response?
You just saw an advertisement in the newspaper for a very inexpensive big screen television on sale at a local department store. The ad implies the TV has all the features that a customer would want in that type of TV. You get to the department store and the television that is on display that matches the price does not look like the TV in the ad, nor does it have the functions that you would expect in a big screen TV. The salesperson tells you that you should look at the model staged next to the model on sale, which has all the features you are looking for, but is $200 more. What do you think the pricing strategy is that this company used in this instance?
What will be an ideal response?
Unlike temporary help agencies, which supply workers only for limited periods, employee leasing companies place their employees with subscribers on a permanent basis.
Answer the following statement true (T) or false (F)
Exchange rate risk exists in international trade contracts denominated in a foreign currency, but not
in foreign portfolio investments, because the returns on investment securities are adjusted automatically for differences in exchange rates. Indicate whether the statement is true or false