Finance 426 Assignment Example | Topics and Well Written Essays - 500 words

Finance 426 - Assignment Example However, the value of the dollar in the future could increase if expanded MCI output substitutes for telecom imports. 3. Korean Airline buys five Boeing 747s. As part of the deal, Boeing arranges a loan to KAL for the purchase amount from the U.S. Export-Import Bank. The loan is to be paid back over the next seven years with a two-year grace period. 4. In accordance with the following circumstances, say whether the value of the dollar will appreciate, depreciate or remain the same relative to the Yen by explaining each answer. Suppose the exchange rates are free to vary and that other factors are held constant. Answer: considering the above scenario the rate of wages is comparatively high in U.S from Japan whereas the level of productivity is also low compared with Japan which makes it less attractive for investment purposes. It is considered that a country with a weak economy will have a low value currency so dollar will