Consider the exchange rate between South Korea and Tunisia. For each example, decide whether the scenario would tend to cause an appreciation, a depreciation, or have no effect on the South Korean won relative to the Tunisian dinar.

The Economist magazine publishes an article indicating that analysts expect the value of the Tunisian dinar to rise relative to the South Korean won.

The central bank in South Korea raises interest rates on government bonds.

According to a World Bank report, the inflation rate in South Korea is going to be 5% next year, while the inflation rate in Tunisia is going be 10.5%.

The price of a specific basket of goods in South Korea is roughly 1.7 times higher than an identical basket of goods in Tunisia, even after adjusting for the exchange rate.

Answer Bank

Appreciate, Depreciate, and No effect

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics. Within the Caribbean and South American jurisdiction, the economic framework is tightly connected with the major Asian economies of China and Japan, as well as the United States and the United Kingdom. The Caribbean and South American economy respectively, have been a barometer of the global economic cycle. For the South American economy, many Multi-National Corporations have made significant investments in order to achieve a reduction in the production cost of goods and also diversification benefits. Despite the benefits that could possibly materialize, some South American countries have weak banking systems and also have not been resilient through Global market shocks and Financial Crisis. This weakness may be as a result of politics and the quality of prudential supervision. Given this context, respond to the following questions which require research with respect to the localized context and also within the current market dynamics.

“For a fixed exchange rate system to work successfully, the government that oversees its operations must be able to make tight budget and monetary policies prevail”. Agree or disagree and justify your position within the context of the Caribbean and South American Economy?

“We should buy American goods to support America and American workers.” Discuss this statement.

How does the law of comparative advantage relate to the benefits of international trade?

You are the owner of the second largest cruise line in the world. You have 7 different cruise ships that sail all areas of the globe. As second, one of your main goals is to become #1. Your company prides itself on customer service and you believe that this avenue affords you the best opportunity to become #1.

Your largest ship, the "World Traveler" can accommodate 10,000 passengers. During a November cruise in the Southern Caribbean, while docked at Barbados Islands, 5,500 passengers became sick from food poisoning. People from America, Mexico, France, Germany, Japan, and Italy were all part of those who got sick. As it turns out, over 3000 people reported sick but only after returning from excursions on the island.

This situation could represent a possible setback to achieving your #1 position in the world unless it is handled properly. So after extensive discussions with your board of directors, it was decided to not only fully refund all passengers that were aboard this cruise (whether they got sick or not), but to provide for a free cruise on any of your ships at any time throughout the year in any part of the world for up to a 7 days and 8 night’s cruise. Passengers are responsible for the cost of getting to and from the point of debarkation to meet the ship.

Assignment Instructions

Answer the questions listed below:

According to you, what is the issue and who are the various parties/stakeholders affected by it

Present evidence to support your view of the problem as explained previously. The evidence can be from the case as well as outside research.

How would you resolve this issue? Why? Can there be more than one solution?

Logical Logistics Inc. (Logical Logistics or the “Company”) provides transportation and logistics services to customers throughout a network of offices in North America, South America, and Asia. The Company contracts fleets of shipping vessels, trucks, and aircraft to provide regional, long-haul, and international shipments of customer goods. In addition, the Company contracts warehouse operators across North America for use of their facilities as distribution centers that temporarily store goods in transit. The Company has entered into the following contracts with the vendors identified below.

Logical Logistics enters into a contract with See Boat Inc. (See Boat) to use its shipping vessels to transport customer goods from North America to Asia. See Boat has a fleet of 25 multi-use shipping vessels, each of which has the capacity to hold 1,000 shipping containers.

Logical Logistics enters into a contract with Fly-By-Air Inc. (Fly-By-Air) to use its aircraft to transport customer goods from South America to North America. Fly-By-Air has a fleet of 50 multi-use aircraft, each of which has the capacity to hold 500 shipping pallets of customer goods.

Logical Logistics enters into a contract with Trucking Co. Inc. (Trucking Co.) to use its trucks to transport customer goods from distribution centers to retail stores across North America. Trucking Co. has a fleet of 1,500 multi-use long-haul trucking carriers, each of which has the capacity to hold 100 shipping pallets of goods.

Logical Logistics enters into a contract with Warehouse Co. Inc. (Warehouse Co.) to store up to 18,000 shipping pallets of customer goods at one of Warehouse Co.’s locations. Warehouse Co. has the capacity to store 20,000 shipping pallets of goods.

The terms of the shipping contracts are as follows:

• See Boat

o The contract term is for the voyage to transport Logical Logistics’s cargo from Los Angeles to Shanghai. Logical Logistics does not have discretion to change the departure or arrival ports without a renegotiation of the contract fees.

o SB0829, a commercial shipping vessel in See Boat’s fleet, is dedicated to delivering Logical Logistics’s cargo for the term of the contract. See Boat cannot substitute SB0829 with another vessel in its fleet.

o The contract identifies the shipping containers and acceptable cargo (e.g., semiconductors) to be transported on the ship as well as the transportation route. Logical Logistics does not have discretion to change the identified cargo without renegotiating the contract fees.

o See Boat is responsible for the safe passage of the cargo, as well as operation and maintenance of SB0829. The crew determines the ship’s route, speeds, and date of departure from Los Angeles. In addition, Logical Logistics cannot, under any circumstances, replace See Boat’s crew.

• Fly-By-Air o The contract term is five years.

o FBA1231, a commercial aircraft in Fly-By-Air’s fleet, is dedicated to delivering Logical Logistics’s shipping pallets during the term of the contract.

o Logical Logistics determines (1) the airports from and to which goods are shipped and received and (2) the order in which deliveries are made to the airports. Fly-By-Air provides the aircraft’s pilot and crew, and Logical Logistics instructs Fly-By-Air accordingly.

o While Logical Logistics determines what cargo will be transported throughout the term of the contract, certain restrictions prevent the Company from shipping flammable materials.

o Logical Logistics has the right to send the aircraft regardless of whether its cargo levels meet the full storage capacity of the aircraft. If FBA1231 is below capacity, Fly-By-Air cannot use the excess storage space to ship products of its other customers.

• Trucking Co.

o The contract term is five years.

o Trucking Co. must deliver Logical Logistics’s shipments within three weeks of the Company’s notification that it has pallets of customer goods ready for shipping.

o Trucking Co. may choose any truck from its fleet to fulfill the shipping request.

o Logical Logistics may request shipment of 25 to 100 shipping pallets of goods in a single request. (Individual shipping requests generally do not exceed 50 shipping pallets.)

o Trucking Co. has the right to use any excess storage space to ship products of its other customers.

o Trucking Co. determines the shipment’s delivery date (within the threeweek period), as well as the shipping route.

• Warehouse Co.

o The contract term is 10 years.

o Logical Logistics can store up to 18,000 shipping pallets at one specified Warehouse Co. location. Logical Logistics will be charged for storage of 18,000 shipping pallets, regardless of the actual number of pallets stored, and Warehouse Co. cannot use any of Logical Logistics’s unused storage space for other storage needs.

o Warehouse Co. can use the remaining space in its warehouse for other storage needs.

o Warehouse Co. cannot relocate Logical Logistics’s inventory to another facility.

o Logical Logistics has the right to decide which shipping pallets are placed in storage and when they can be removed.

o Warehouse Co. provides the loading and unloading services for the warehouse activities, both of which are dependent on Logical Logistics’s decisions about which shipping pallets are placed in storage and when they can be removed.

The CFO of Logical Logistics recognizes that the new leasing standard contains certain provisions that may affect how the Company treats contracts of this nature.

Required: Analyze the information above, and prepare a memorandum addressing the impact (if any) of the new leasing standard on Logical Logistics’s arrangements for the following considerations:

1. Determine whether each of Logical Logistics’s vendor contracts contains an identified asset.

US History

Freedom House was an organization that:

a demanded American intervention in the European war.

b Jewish refugees could flee to from Europe.

c believed the European war was not an American concern.

d raised funds for Japanese-Americans to use for legal fees to bring court cases against the United States for unlawful imprisonment.

e was located in Chicago and acted as a networking resource for blacks moving there from the South.

Which of the following best describes Nixon's foreign policy of "détente"?

a It meant a continuation of the status quo.

b The United States was not yet willing to sign arms-control treaties with the Soviet Union.

c As demonstrated by diplomatic visits to both China and the Soviet Union, Nixon sought a peaceful coexistence with communist nations.

d It meant a rejection of Henry Kissinger's "realist" approach to the Cold War.

e It meant Nixon had gone "soft" on communism.

"Americanization" was:

a the Viet Cong's policy of immediate execution of defectors recaptured from the South Vietnamese army.

b Nixon's term for the transformation of young people into "real" Americans when they refrained from protesting against the war.

c Nixon's Vietnam strategy to have American troops gradually withdraw and South Vietnamese troops assume more of the fighting.

d the State Department program offering fast-tracked political asylum for South Vietnamese military officials and their families.

e the spread of American culture in South Vietnam to display the benefits of capitalism.

What was the Contract with America?

a A press term for the Clinton reelection strategy.

b Clinton's 256-page proposal to overhaul the nation's welfare system.

c A 1994 Republican plan to steeply cut federal education, medical, and environmental programs.

d A speech delivered by Clinton that promised to continue to work on health care reform.

e what Democrats called Bill Clinton's victory in 1992.

Globalization:

a had little to do with the collapse of communism.

b was symbolized by corporations such as Microsoft and organizations like the WTO.

c is closely associated with the 1990s, although it was not a new phenomenon.

d promoted the free flow of goods and services across borders, but only with a strict regulatory apparatus in place.

e B and C

In the 1990s, the prison population:

a declined because there was little new prison construction.

b experienced shorter sentences and more rehabilitation programs than before.

c increased because crime rates increased in the 1990s.

d increased as state governments increased penalties for crimes and decreased parole.

e declined because states refused to fund the "prison-industrial complex."

Below is information related to Dubai Trading Co. though September 2019
1- On October 1, the company started the Business with Capital of 400,000 Dhs.
deposited in the ADIB Bank
2- On October 3, Dubai Trading Co. Borrowed 50,000 Dhs. from ABC Bank (Bank
lone) received the amount cash
3- On October 6, Dubai Trading Co. purchased office equipment from Noor Co.
on Credit costs 60,000 Dhs.
4- On October 10, Dubai Trading Co. transferred 20,000 Dhs. from the cash to
the ADIB Bank.
5- On October 12, Dubai Trading Co. Purchased product from Liza Co. for 30,000
Dhs. , paid 10,000 Cash the balance on Credit
6- On October 15, Dubai Trading Co. sold product for 16,000 Dhs. cash
7- On October 20, Dubai Trading co. sold product for 35,000 Dhs. to Ali on
credit.
8- On October 25, Dubai Trading co. paid 10,000 DHS. to Liza by chick at ADIB
Bank.
9- On October 28, Dubai trading co. paid 45,000 DHS. Employees’ salaries from
ADIB Bank.
10- On October 30, Dubai Trading co. paid 2000 Dhs Utilities Expanses
Cash.

Instructions
1- Journalize these transactions in the Dubai Co. General Journal
2- Post all accounts to the General ledger