International Finance

THE WORLD OF INTERNATIONAL FINANCEASSIGNMENT PROBLEMS1 In what ways might the following be affected by sudden, unexpected changes in exchangerates?a An American holder of US Treasury bondsb An American holder of GM stockc An American on vacation in Mexicod An American holder of Honda stocke A Canadian on vacation in the United States2 What is meant by ‘‘shrinkage of economic space?’’3 What are the possible implications of adoption of a common currency such as the euro?4 What competitive advantages may be behind the success of a particular industry ininternational trade?5 Why have some governments been concerned with the growing importance ofmultinational corporations?BIBLIOGRAPHYAliber, Robert Z., The Handbook of International Financial Management, Dow Jones-Irwin, Homewood, IL, 1989.Aliber, Robert Z. and Reid W. Click, Readings in International Business, MIT Press, Cambridge, MA, 1993.The Economist, ‘‘Multinationals: A Survey,’’ March 27, 1993.Eichengreen, Barry, Michael Mussa, Giovanni Dell’Ariccia, Enrica Detragiache, Gian Maria Milesi-Ferretti,and Andrew Tweedie, ‘‘Liberalizing Capital Movements: Some Analytical Issues,’’ Economic Issues, 17,International Monetary Fund, Washington, DC, 1999.Evans, John S., International Finance: A Markets Approach, Dryden Press, Fort Worth, TX, 1992.Harris, Richard G., ‘‘Globalization, Trade and Income,’’ Canadian Journal of Economics, November 1993,pp. 755–76.Krugman, Paul A. and Maurice Obstfeld, Geography and Trade, MIT Press, Cambridge, MA, 1991.—— Currencies and Crises, MIT Press, Cambridge, MA, 1991.—— International Economics: Theory and Policy, 6th edn, Addison-Wesley, Boston, MA, 2002.Ohmae, Keniche, The Borderless World: Power and Strategy in the Interlinked Economy, Harper-Collins,New York, 1990.Porter, Michael E., The Competitive Advantage of Nations, Palgrave-Macmillan, New York, 1998.Reich, Robert B., The Work of Nations: Preparing Ourselves for the Twenty-First Century, Alfred A. Knopf,New York, 1991.Vernon, Raymond and Louis Wells, Jr, Manager in the International Economy, 5th edn, Prentice-Hall, EnglewoodCliffs, NJ, 1986.& 18