The economic integration in bilateral or regional agreements is touted to promote more trade and economic growth. But not all economic integration is positive for all parties. Can you point out any of the disadvantages of the economic integration with one specific example (country, company, or population how they were affected). If you can speculate about the future of the regional economic integration in the next 10 years or 25 years, which way it would go.three discussion for this topic ( 100 minimum for each discussion)
BHP Australia. BHP, the Australian resource company, is evaluating an export sale of its coal with a prospective Indonesian distributor. The purchase would be for 1650 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp9450/A$, translates into nearly A$175000. Although not a big sale by company standards, company policy dictates that sales must be settled for at least a minimum gross margin, in this case, a cash settlement of A$168 000 on the sale. The current 90-day forward rate is Rp9950/A$. Although this rate appeared unattractive, BHP had to contact several major banks before even finding a forward quote on the rupiah will hold relatively steady, possibly falling to Rp 9400 over the coming 90 to 120 days. Analyse the prospective sale and make a hedging recommendation
April 27, 2015
2:34 pm
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