Genius

Jim could also borrow euros at an interest rate that is lower than the U.S.

Jim could also borrow euros at an interest rate that is lower than the U.S. 



1. Should Jim borrow dollars or pounds to finance his joint venture business? Why?

2. Jim could also borrow euros at an interest rate that is lower than the U.S. or British rate. The
values of the euro and pound tend to move in the same direction against the dollar but not always
by the same degree. Would borrowing euros to support the British joint venture result in more
exposure to exchange rate risk than borrowing pounds? Would it result in more exposure to
exchange rate risk than borrowing dollars?




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13 Apr 2016

Answers (1)

  1. Genius

    Jim could also borrow euros at an interest rate that is lower than the U.S.

    Jim could also borrow euros at an interest rate that is lower than the U.S. Jim could also ****** ******
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