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Finance

1.Why do firms become multinational. Support with few examples of firms doing multinational and the reasons.

2.What are the differences between the three theories of international business? (Theory of Comparative Advantage -??????????? Imperfect Markets Theory - Product Cycle Theory)

3.A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 178 cents per pound, the initial margin is $7,020 per contract, and the maintenance margin is $5,520 per contract. A margin call happens if the futures price of frozen orange juice falls by more than cents per pound. $ 3.000 can be withdrawn from the margin account if there is a gain on one contract of $1500. This will happen if the futures price rises to 188 cents per pound. 20 168 52000 $ 1500 10 5 o 158 15 178 52500 53000 2

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