In Most Interviews,the Interviewer and Interviewee Agree on the Purpose

question 1

True/False

In most interviews,the interviewer and interviewee agree on the purpose.

Learn the key financial theories related to international finance, including purchasing power parity, interest rate parity, the international Fisher effect, and the unbiased forward rates condition.

Identify the factors that supply and demand currencies in the foreign exchange market.

Analyze international capital budgeting projects using net present value method in different currency approaches.

Understand the mechanisms and importance of forward trades in mitigating exchange rate risk.

---

Definitions:

Discount Rate

The rate of interest applied to calculate the present value of future cash flows.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Investment Project

A project requiring capital investment, aiming to generate financial returns or benefits in the future.

Cash Operating

Refers to the activities that involve the cash inflows and outflows from a company's primary business operations.