In theory, the arbitrage opportunity does not exist. However, with the new technologies and increased globalization, could arbitrage opportunity exist in some new ways?
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- what are the advantages and drawbacks for digital Technology: How It Could Transform the International Monetary System, and what are the suggestions for reducing the risks?Does arbitrage destabilize foreign exchange markets? If yes, which argument do yousupport? offer your own opinion on this issue.What do you know about arbitrage opportunity? Discuss with examples. Also, present a scenario of any type of international arbitrage if possible. If so, how would it be executed and how would market forces be affected? Does arbitrage opportunity destabilize foreign exchange markets?
- Explain why it might still be more efficient on a risk/reward basis to invest internationally rather than only domestically in the long run.Although international trade might have approached the comparative advantage model during the nineteenth century, it certainly does not today. Explain one reason why this is the case.Does Arbitrage destabilize foreign exchange markets? Support your logic about that statement
- What are the disadvantage of embracing digital currencies in investment or financial transaction?Internationalization theory suggests that Select one: a. FDI is more likely to take place when the costs of negotiating, monitoring, and enforcing a contract with a second firm is higher. Ob. FDI is more likely to occur when prices are high, competition is intense and lower trade barriers as well as exchange rates are strong. O c. FDI occurs in developing countries only in order to boost their economies and improve the country position. d. None of the options are applicable. Next pageExplain the Risks of Global Investment?
- Would exchange rate changes always increase the risk of foreign investment? Discuss the condition under which exchange rate changes may actually reduce the risk of foreign investment.Do international differences in financial leverage exist? Explain.How does climate change threaten financial stability?