跨国公司理财整理1.docVIP

Answer the following questions: 1. What are the functions of the foreign exchange markets? The mechanism 机制 by which participants transfer purchasing power 购买力 between countries Obtain or provide credit 信贷 for international trade (and investments) transactions 国际贸易和投资业务 Minimize exposure 暴露程度 to the risks 风险 of exchange rate changes 2. What is the Interest Rate Parity (IRP)? The theory of interest rate parity (IRP) provides the link between the foreign exchange markets and the international money markets. The difference in the national interest rates for securities 证券 of similar risk a