For each of the following events/items, state whether the impact is positive (+), negative (-) or no impact (0). a) A Malaysian company has imported from Japan. The Yen appreciates against the Ringgit. b) A Malaysian company has imported from Japan. What is the impact if the Ringgit appreciates against the Yen? c) A Malaysian company borrows in Euros from Deutsche Bank. The loan is repayable in six months. The Ringgit appreciates against the Euro.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: International Finance
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For each of the following events/items, state whether the impact is positive
(+), negative (-) or no impact (0).
a) A Malaysian company has imported from Japan. The Yen appreciates against the
Ringgit.
b) A Malaysian company has imported from Japan. What is the impact if the Ringgit
appreciates against the Yen?
c) A Malaysian company borrows in Euros from Deutsche Bank. The loan is repayable
in six months. The Ringgit appreciates against the Euro.
d) What happens if the loan in (c) above is repayable in one lump sum in five years
from now and the Euro now appreciates against the Malaysian Ringgit?
e) A Malaysian mutual fund invests in an Australian ETF (exchange traded fund). The
Australian Dollar appreciates against the Malaysian Ringgit.

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