A UK company is opening a store in the US and needs 390$ investment. Currently exchange rate in the UK is 8.5% and Exchange Rate is 1.6 $/£. Company wants to avoid exchange rate exposure by raising loan from the US. In order to get a favorable term from the US banks, UK company enters a swap with a US firm which also needs financing in UK. According to terms, US company raised 390$ financing from a US bank at a fixed interest rate of 3.5% and is payable in 3 years. Interest Payments are semi-annual.

Zero Rates in the UK and the USA are provided in the below table:

UK post BREXIT trade agreements For the past 40 years, the UK has been precluded from carrying out its own international trade policy. Under the Common Commercial Policy, the EU has the exclusive competence to conduct trade policy and relations on behalf of its Member States. This includes the right to regulate all aspects of external trade and to conclude trade agreements. Those powers will be repatriated once the UK formally leaves the EU, meaning that the UK will be solely responsible for its external trade relations. This will enable the UK to negotiate and conclude its own trade agreements and to regulate market access issues (eg tariffs, subsidies, trade remedies) in the future, and it will also require the establishment of new legislative and institutional frameworks under which the UK’s trade policy will operate. The ability to negotiate trade agreements has also been identified by the UK government as one of the key ‘red lines’ in the negotiating objectives for exiting the EU,1and the UK has already established a Department of International Trade whose remit includes the negotiation of future UK trade agreements. Much has already been discussed and written about the existing legal parameters (at both EU and international level) within which the UK trade policy will be conducted, as well as the shape that the UK’s future trade policy may take.2Far less attention, however, has been devoted to the decision-making processes which will underpin the UK’s trade policy and law and, in particular, the constituent actors that will be involved in shaping such policy and law. This question is particularly relevant with respect to the UK’s the devolved administrations, which will all have a significant stake in the UK’s future trade policy

. Q1. Discuss the challenges and potential that UK will face in the post BREXIT.

Q2. Discuss the future of trade agreements that UK may establish after the BREXIT.

Q3. Discuss who is the loser and the gain from BREXIT

QUESTION 2 (25)
EXCHANGE RATES IN UK
Towards the end of 2009 the pound fell to a six-month low of 1.0628 Euros. Figures released by the UK
government suggested that demand was still low in the country. The pound was also under downward pressure
because of the low value of the interest rate. A recent report suggested these would remain at their historic
low of 0.5% until 2014. Business confidence in general remained frail and there was concern over when the UK
economy would start to recover from its negative growth. There was huge excess capacity in the UK. In addition,
the government had a huge deficit which was expected to cause problems with cutbacks and tax increases in
the future.
Adapted: Gillespie, A. (2013), Business Economics, Oxford University Press
2.1 Discus the key factors that determines the value of a currency in the UK. (10)
2.2 Critically analyse the possible effects on the UK economy of a fall in the value of the currency. (15

As you are aware, there has been considerable discussion about the United Kingdom's (UK) decision to leave the European Union. Government representatives of the UK claim that workers in the UK are more highly motivated than those in the EU. To support their claim, they have taken independent samples of 13 groups in the UK and the EU and have collected data on levels of work motivation using a standard testing tool. The data of the samples in the EU and the UK are shown in the table below:

A.) Use hypothesis testing to determine if the sample data indicate that the mean for the UK is greater than that of the EU. Use an alpha of .05.

B.) Test to see if the population variances for the two groups are equal. What does this imply with respect to your hypothesis test above? Use an alpha of .05.

_{What is the UK doing to address a major health systems concern? explain 3 major health concern in the UK}

Officially, the UK is due to leave the EU on 31 October 2019. How the UK and the world could cope with it in business?

A research group conducted a survey about church attendance. The survey respondents were asked about their church attendance and asked to indicate their age. The results are as follows:

Answer the following four questions. Use 5% level of significance throughout.

1.We use the sample data above to determine whether church attendance is independent of age. Calculate the value of your test statistic. (4 decimal places) (5)

2. What is the critical value of test statistic? (1)

3. What is your conclusion? Interpret in terms of the null and alternative hypothesis. (2)

4. Using the multiple comparison procedure, find out if there is a significant difference between age groups 20-29 and 30-39?

1.Describe the differences, if any, between laminar and turbulent boundary layers.

2.Describe the different sub-layers required to model turbulent boundary layers.

3.Discuss the reason(s) for a similar pattern between wall shear stress and heat transfer coefficient profiles.

4.Describe the reason(s) why both turbulent momentum and thermal boundary layers approaching each other.

5.Describe the reason(s) why the unsteady governing equation terms must be kept when dealing with turbulence

Solve Laplace's equation inside a rectangle 0 ≤ x ≤ L, 0 ≤ y ≤ H, with the following boundary conditions [Hint: Separate variables. If there are two homogeneous boundary conditions in y, let u(x,y) = h(x)∅(y), and if there are two homogeneous boundary conditions in x, let u(x,y) = ∅(x)h(y).]:

∂u/∂x(0,y) = 0

∂u/∂x(L,y) = 0

u(x,0) = 0

u(x,H) = f(x)