国际财务管理习题解答

国际财务管理习题解答内容摘要：

1,190 300 1,490 Textiles 200 60 260 ________________________________________________________________________ IV. Consumption (lbs or yards) (000,000) _____________________ ______________________________ Food 1,190 300 1,490 Textiles 200 60 260 ________________________________________________________________________ Solution: Examination of the notrade input/output table indicates that Country X has an absolute advantage in the production of food and textiles. Country X can “trade off” one unit of production needed to produce 17 pounds of food for five yards of textiles. Thus, a yard of textiles has an opportunity cost of 17/5 = pounds of food, or a pound of food has an opportunity cost of 5/17 = .29 yards of textiles. Analogously, Country Y has an opportunity cost of 5/2 = pounds of food per yard of textiles, or 2/5 = .40 yards of textiles per pound of food. In terms of opportunity cost, it is clear that Country X is relatively more efficient in producing food and Country Y is relatively more efficient in producing textiles. Thus, Country X (Y) has a parative advantage in producing food (textile) is parison to Country Y (X). When there are no restrictions or impediments to free trade the economicwell being of the citizens of both countries is enhanced through trade. Suppose that Country X shifts 20,000,000 units from the production of textiles to the production of food where it has a parative advantage and that Country Y shifts 60,000,000 units from the production of food to the production of textiles where it has a parative advantage. Total output will now be (90,000,000 x 17 =) 1,530,000,000 pounds of food and [(20,000,000 x 5 =100,000,000) + (90,000,000 x 2 =180,000,000) =] 280,000,000 yards of textiles. Further suppose that Country X and Country Y agree on a price of pounds of food for one yard of textiles, and that Country X sells Country Y 330,000,000 pounds of food for 110,000,000 yards of textiles. Under free trade, the following table shows that the citizens of Country X (Y) have increased their consumption of food by 10,000,000 (30,000,000) pounds and textiles by 10,000,000 (10,000,000) yards. INPUT/OUTPUT WITH FREE TRADE __________________________________________________________________________ Country X Y Total __________________________________________________________________________ I. Units of Input (000,000) _______________________ ________________________________ Food 90 0 Textiles 20 90 __________________________________________________________________________ II. Output per Unit of Input (lbs or yards) ______________________ ________________________________ Food 17 5 Textiles 5 2 __________________________________________________________________________ III. Total Output (lbs or yards) (000,000) _____________________ ________________________________ Food 1,530 0 1,530 Textiles 100 180 280 __________________________________________________________________________ IV. Consumption (lbs or yards) (000,000) _____________________ ________________________________ Food 1,200 330 1,530 Textiles 210 70 280 __________________________________________________________________________ CHAPTER 2 INTERNATIONAL MONETARY SYSTEM SUGGESTED ANSWERS AND SOLUTIONS TO ENDOFCHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Explain Gresham‟s Law. Answer: Gresham‟s law refers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This kind of phenomenon was often observed under the bimetallic standard under which both gold and silver were used as means of payments, with the exchange rate between the two metals fixed. 2. Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer: The adjustment mechanism under the gold standard is referred to as the pricespecieflow mechanism expounded by David Hume. Under the gold standard, a balance of payment disequilibrium will be corrected by a counterflow of gold. Suppose that the . imports more from the . than it exports to the latter. Under the classical gold standard, gold, which is the only means of international payments, will flow from the . to the . As a result, the . (.) will experience a decrease (increase) in money supply. This means that the price level will tend to fall in the . and rise in the . Consequently, the . products bee more petitive in the export market, while . products bee less petitive. This change will improve . balance of payments and at the same time hurt the . balance of payments, eventually eliminating the initial BOP disequilibrium. 3. Suppose that the pound is pegged to gold at 6 pounds per ounce, whereas the franc is pegged to gold at 12 francs per ounce. This, of course, implies that the equilibrium exchange rate should be two francs per pound. If the current market exchange rate is francs per pound, how would you take advantage of this situation? What would be the effect of shipping costs? Answer: Suppose that you need to buy 6 pounds using French francs. If you buy 6 pounds directly in the foreign exchange market, it will cost you francs. Alternatively, you can first buy an ounce of gold for 12 francs in France and then ship it to England and sell it for 6 pounds. In this case, it only costs you 12 francs to buy 6 pounds. It is thus beneficial to ship gold due to the overpricing of the pound. Of course, you can make an arbitrage profit by selling 6 pounds for francs in the foreign exchange market. The arbitrage profit will be francs. So far, we assumed that shipping costs do not exist. If it c。