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Why are transactions costs, currency restrictions, and differential tax law

Why are transactions costs, currency restrictions, and differential tax laws important 



1. Impact of a Weak Currency on Feasibility of DFI.
Packer, Inc., a U.S. producer of computer disks, plans to establish a subsidiary in Mexico in order to penetrate the Mexican market. Packer- executives believe that the Mexican peso- value is relatively strong and will weaken against the dollar over time. If their expectations about the peso value are correct, how will this affect the feasibility of the project? Explain
2. Testing Interest Rate Parity. 
Describe a method for testing whether interest rate parity exists. Why are transactions costs, currency restrictions, and differential tax laws important when evaluating whether covered interest arbitrage can be beneficial?



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04 May 2016

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  1. Genius

    Why are transactions costs, currency restrictions, and differential tax laws important

    Why are transactions costs, currency restrictions, and differential tax laws important ****** ******
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