DIRECTIONSChoose two topics (total) for which you will conduct internet research. Be sure the...

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DIRECTIONSChoose two topics (total) for which you will conduct internet research. Be sure the choices come from two different chapters. For example, you may choose foreign direct investments from Chapter 1 and bid-ask spread from Chapter 7. Conduct internet research that identifies at least 2 websites that discuss or involve the topic you have chosen. Include a last page for your website references and format them in APA style.Write a paragraph of at least 9 sentences summarizing what the website shows related to your topic. Be sure to supply citations in the paragraph ( in APA format) that refer to the websites you have found. Avoid using quotes as these will NOT count toward 9 sentences minimum.CHOICE THE TWO FOLLOWING TOPICS BELOW (MULTINATIONAL CORPORATION CHAPTER ONE) ( AND BANKER’S ACCEPTANCE CHAPTER EGHTEEN)    CHAPTER ONEAitrageForeign direct investmentGlobalizationMultinational corporationTax aitrageTWOCuency depreciationExchange rate Freely Floating exchange ratePegged cuencyFOURCovered interest aitrageFisher EffectInterest Rate ParityInternational Fisher EffectLaw of One PricePurchasing Power ParityUnbiased forward rateSEVENBid-ask spreadCHIPSCross rate cuency aitrageDirect quotationForward contractForward premiumHedgersHerstatt riskIndirect quotationInteank marketSWIFTSpot marketSpot price    EIGHTAmerican optionAt-the-moneyCall optionCuency futureCuency optionEuropean optionExercise (strike) priceFutures contractInitial marginIn-the-moneyMaintenance marginMargin callMarking to marketOut-of-the-moneyPut optionEIGHTEENBanker’s acceptanceBill of ladingCash in advanceCommercial invoiceConfirmed letter of creditDiscounting DraftExport credit insuranceFactoringForfaitingIevocable Letter of CreditNonrecourseOpen account salesRecourseSight draftTime draft

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Bankers Acceptance
Whenever a bank gives guarantee or accepts any future payment on behalf of two persons then the bankers’ acceptance is created. It is basically a time draft which gives bank an order of paying a stated amount of money to the one holding the acceptance on the given date (Anderson, 2009).  Let us take an example of two companies one having business in X country and another in Y country. Zen Ltd. of X country sells mobile phones. So there is an order from Can Ltd. of Country Y to purchase Mobile phones worth $5 lakhs from Zen Ltd. Now Zen ltd wants to get paid as soon as there order is shipped but Can Ltd cannot pay at that time, so here the bankers’ acceptance will come into play as to fulfill the demand of Zen Ltd, Can ltd will go to the bank and will request the bank to issue letter of credit which is a document which ensures full payment to the seller on time. After the bank issues the letter of credit taking some collateral which will be the title on the purchased mobile phones, the letter of credit will be send to Zen Ltd. After the shipment of mobile phones Zen ltd bank can demand the amount from the bank of Can Ltd and the bank can record the amount as loan to Can Ltd or as an acceptance depending upon the level of capital of bank, its future lending opportunities etc. and Can Ltd will discharge its liability towards the bank within a stipulated time.
Merely an order issued by the importer to the bank for asking the bank to pay the exporter or the bearer of document a stated sum of money is not a bankers’ acceptance. It becomes an acceptance when an authorized bank signs the document and stamps it as ‘accepted’.

DIRECTIONS Choose two topics (total) for which you will conduct internet research. Be sure the choices come from two different chapters. For example, you may choose foreign direct investments from...

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