International Finance

Mid exam
Question 1:

Why did England leave the European Union. The answer should focus on the following
elements
 Currency
 Financial system

Question 2:

Base on the provided information in lecture 2, please explain in your own word how the
international trade is altered by the exchange rates. Give one example to illustrate for this
point

Question 3:

As a student from finance mayor, having said that central bank mostly intervene direct and
indirect foreign exchange market. In your own words, you require explain the above facts. In
addition, discuss about the advantages and disadvantages of central bank control foreign
exchange market directly and indirectly

Question 4:

Alan is having a company based in Vietnam which mainly export the rice to USA. On 1 st July
2023, his company exported 1000 tons of rice and is expected to receive the payment
200,000 USD on 1st August 2023. Assuming that the 1 USD on 1/07/2023 = 23,000 VND.
After considering all the factors which are US economic condition and unstable politic, Alan
has concluded that USD will depreciate value on 1st August 2023. To avoid losing money,
your task is to advise Alan what need to be done in this case

Question 5:

Explore how the three key documents in import/export combine to finance both the
transaction and to manage its risks. In this document, which one is the most common one?
Requirement:

 All the questions need to be answered

 Approximate 250 words per question and word count is more or less 10%
 Dead line for this essay will be submitted no later than July 8th 2023