Author Question: Differentiate between currency speculation and currency arbitrage. What will be an ideal ... (Read 130 times)

craiczarry · **on:** Jul 7, 2018

Differentiate between currency speculation and currency arbitrage.

What will be an ideal response?

Question 2

Describe the two techniques most often used to estimate company sales potential in developing countries and emerging markets. Provide examples to illustrate how each method works.

What will be an ideal response?

carolinefletcherr · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Awesome job my friend

Answer to Question 2

Analogy. Using this method, the researcher draws on known statistics from one country to gain insights into the same phenomenon for another, similar country. For example, if the researcher knows the total consumption of citrus drinks in Hungary, then-assuming citrus drink consumption patterns do not vary much in neighboring Romania-a rough estimate of Romania's consumption can be made, adjusting, of course, for the difference in population. If a firm knows X number of bottles of antibiotics are sold in a country with Y number of physicians per thousand people, it can assume the same ratio (of bottles per 1,000 physicians) will apply in a similar country.
Proxy indicators. With proxy indicators, the researcher uses known information about one product category to infer potential about another product category, especially if the two are complementary. A proxy indicator of demand for professional hand tools might be the level of construction activity in the country; for a particular piece of surgical equipment, it might be the total number of surgeries performed.