Short Term Financing With Foreign Currency - 1223 Words

Financing in Foreign Currency Decision of short term financing with foreign currency has both pros and cons which can impact, maximizing the value of the Specialty Coffee Shop. In general, MNC should consider borrowing in the currency that offers lower interest rate which will reduce the cost of borrowing. According to the textbook exhibit 20.1 MNCs that conduct business in developing countries have high interest rates compared to developed countries, thus increase the cost if money is borrowed in the local currency. The Specialty Coffee Shop would need to consider the interest rate in the United States (Dollar) versus the interest rate when borrowing in Pakistan (the Pakistan Rupee). Figure 1 in Appendix shows the interest in†¦show more content†¦The decision for MNC is based on a tradeoff of the expected reduction in financing expenses versus the risk that the currency borrow appreciates against their inflow currencies or vice versa. According to Madura (2015) â€Å"the following effective financing rate formula can be used to compare positive and negative effective rate on actual cost using. rf = (1+if)(1+ef)-1 Where rf = effective financing rate if = interest rate of the foreign currency ef = percentage change in foreign currency spot rates†. Appendix Figure 3 shows real effective exchange rate of Pakistan Rupee on the rise in recent years that would increase the cost of the loan for example suppose a Pakistan Rupee debt can be obtained at 5.75% (against a U.S. dollar) and Pakistan dollar over the life of the loan appreciated 10% than the effective rate is 29.6% (rf = (1+.0575)(1+.10)-1 = 16.33%). The actual cost of financing in Pakistan Rupee is greater than 5.75% interest rate due to the appreciation of the Pakistan Rupee. If the Pakistan Rupee depreciate by 20% than the actual cost of the financing is -26.9% (rf = (1+.0575)*(1+ (-.20))-1 = -26.9%). The determining of the effective financing rate can be helpful in the decision making, however the risk is uncertainty of the exchange rate movement for Pakistan Rupee. (Madura, 2015). The attractiveness of lower costs of financing due to depreciation of Pakistan Rupee will increase the foreignShow MoreRelatedStarbucks Is The Biggest Most Valuable Fast Food Brand Worldwide846 Words   |  4 Pagessecond after global giant McDonalds. (statista.com) Short term financial needs Short-term financing is a fast and flexible way for companies to obtain funds for the daily operations of the business and it is a method of raising funds involving financial obligations that need to be repaid within a year or less. The businesses with cyclical operations like retailers or those engaged in international trade usually obtains financing through short term debt. 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3g networks Free Essays

â€Å"Knock , Knock. Who’s There? It’s the Papparzzi† In 1960 Federico Fellini directed a film intitled â€Å"La Dole Vlta†. In the film actor Walter Santesso plays a news photographer named ‘Paparazzo’. We will write a custom essay sample on 3g networks or any similar topic only for you Order Now Little did any of them know the term ‘paparazzo’ would be a staple in households and news lines everywhere. In today’s times the paparazzi are considered to be rutheless photographers who will do anything to get a snapshot of a celebrity or athelete. Whether it be them leaving practice or a movie set, going out to clubs at night, grocery shopping, or even walking their kids to school. Some say paparazzi are down right (excuse my french) assholes. Standing in line at the supermarket or walking down the streets in some cities, we see magazines or tabloids that have celebrites faces plastered on them in sometimes disapproving situations. We never wonder how the pictures got taken or what lengths it took to get such an amazing or sometimes horrid shot. In June of 2005, then 18 year old Lindsay Lohan’s car was hit by photographer Galo Cesar Ramirez who was trying to follow her. In an interview she said â€Å"A line needs to be drawn in terms of getting violent. † She then Joined other celebs including Cameron Diaz and Justin Timberlake in trying to prevent the â€Å"pap† from invading their personal space. In several instances the paparazzi claim the First Amendment, which prohibits the making of any law abridging the freedom of speech, infringing on the freedom of the press, or interfering with the right to peaceably assemble. It is very hard for a celebrity to not seem like a hyprocrite when asking for the paparazzi to leave them alone. When leaving your â€Å"normal† life behind to partake in the lavish yet dangerous life of being famous, there are some things that comes with the erritory. How to cite 3g networks, Papers

Singing To Cuba Essay Example For Students

Singing To Cuba Essay Singing to CubaResistance, as exhibited throughout this units readings, provides a dangerous outlet for the frustrations of Latinos everywhere.People in Latin countries, such as Cuba, often times seem to express that by sitting quietly under a dictators rule you are agreeing with his regime.They combat this phenomena in both violent and nonviolent ways, but both provide serious risk.Rules setup in countries like Cuba are severly enforced, evident by the numerous soldiers encamped on every street. In Margarita Engles short story, From Singing to Cuba, the theme of resistance looms over the story and dictates the actions of the characters. Examples of resistance occur throughout this story, but several particular incidents provide very sufficent evidence of this.Firstly, the main character Miguelito wears a large crucifix around his neck when walking in public.This action is very taboo in this area of the world, and this fact alone plays a large role in Migelitos choice to wear it.He left the top button of his shirt open to make sure the crucifix showed and he walked with pride, relieved to be taking a step so bold and defiant.This statement alone proves that not only does he wear the piece of jewelry for his love of god, but also to show his resistance towards the rules.Another big example of resistant behavior is the meer fact that the two family members converse openly throughout the story.Foreigners and natives are not allowed to speak at all in Cuba, and by conversing the two are leaving themselves at severe risk of being punished.These types of little resistive fights occur through the entirety of the story, one building to another. Through resistance, the characters in this story develop an inner pride at not being the lapdogs of the Castro regime.Although not fighting to the degree of some people, such as the Mirabel sisters against Trujillo, Miguelito and his relative are certainly showing that they dont agree with the laws.The quote about Miguelitos pride when showing his crucifix showed a major example of what he gains from resistance; pride.This is also a major factor in what keeps citizens of countries like Cuba fighting, little moral victories that they can use to fuel bigger ones.In order for any resistive fight to be successful, a foundation of self pride must be constructed. Despite the major positive that this story portrays about resistance, there are also many negative things that can come from it.The main one is fear.Everywhere the two walked they were followed by soldier weilding guns, mirroring their every step.When taking pictures of the soldiers they were threatened to let them know this would not be tolerated.The story also described another act that is sometimes perpatrated against resistors.An Act of Repudiation is performed when soldiers disguise arrests, beatings, and destruction of property as simple progovernment demonstrations.This act terrorizes onlookers and makes people think twice before going against government rule. The events described above make Cuba a very tense place to live, and the text portrayed this immensely.The government, to this day, has prevented any overwhelmed form of resistance, causing the people to develop pride from minor displays.Although these acts seems small on the outside, they allow the Miguelito to build up a wall of freedom around him and keep his fight going.To this point in the writing, the regimes acts of terror havent effected him.This allows him to parade the street as he does, displaying his crucifix and talking openly to his cousin.