International Business Finance and Derivatives
Discussion Question:
Q- Inter
International Business Finance and Derivatives
Discussion Question:
Q- International Business Finance
The Saudi Vision 2030 is a plan to diversify the economy and develop sectors such as education, infrastructure, and tourism. The government desires the encouragement of private investment in a number of sectors of the Saudi economy and emphasizes economic and investment activities and increasing non-oil industry trade between countries.
What role do you consider foreign investors play in achieving this vision this and how should they deal with the exchange rate risks associated with investing in the Saudi economy?
Search the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.
For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs.
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 600 word limit.
Learning Outcomes
Examine the role of globalization on product and financial markets.
Explain the role of foreign exchange in interest rates and purchasing parity.
Apply international financial theories to determine exchange rates.
Readings
Required:
Chapter 16: International Business Finance in Foundations of Finance
Alfalih, A. A., & Bel Hadj, T. (2020). Foreign direct investment determinants in an oil abundant host country: Short and long-run approach for Saudi Arabia. Resources Policy, 66, 101616.
Recommended:
Chapter 16 PowerPoint Slides
Chahrour, R., & Valchev, R. (2022). Trade finance and the durability of the dollar. Review of Economic Studies, 89(4), 1873–1910.