International Business | Question & answers



The bid-ask rate for Rs vs Dollar is 81.983/81.987. To calculate the spread, we subtract the bid rate from the ask rate:

Spread = Ask Rate – Bid Rate

Spread = 81.987 – 81.983

Spread = 0.004

Therefore, the spread in this case is 0.004.

Now, if the importer is purchasing 48,000 USD, we can calculate the spread cost by multiplying the spread with the transaction amount:

Spread Cost = Spread x Transaction Amount

Spread Cost = 0.004 x 48,000

Spread Cost = 192

Therefore, the spread cost for the importer purchasing 48,000 USD would be 192 units of the base currency (Rs in this case).

Which corpoarte culture can be best suited for individuals working with various generations in an organization like Millenials and Gen Z with various expectations and mind set.


An inclusive and adaptable corporate culture can be best suited for individuals working with various generations, including Millennials and Gen Z. Here are some characteristics of a corporate culture that can foster a positive and engaging environment for employees from different generations:

  1. Flexibility and Work-Life Balance:
    • Offering flexible work arrangements, such as remote work options or flexible hours, can cater to the preferences and needs of Millennials and Gen Z who value work-life balance and autonomy.
  2. Embracing Technology:
    • Creating a tech-savvy workplace with the latest tools and technology can cater to the digital native generations. Providing access to innovative digital platforms and collaborative tools can enhance productivity and communication.
  3. Open Communication and Feedback:
    • Encouraging open communication channels, including regular feedback sessions and opportunities for idea-sharing, enables employees from different generations to express their thoughts, contribute to decision-making, and feel valued.
  4. Continuous Learning and Development:
    • Offering opportunities for professional growth and development, such as training programs, mentorship, and learning platforms, helps meet the aspirations of Millennials and Gen Z who seek continuous learning and advancement.
  5. Diversity and Inclusion:
    • Cultivating a diverse and inclusive environment that respects and values individual differences can create a sense of belonging for employees from different generations. Emphasizing equality and inclusivity fosters collaboration and innovation.
  6. Purpose-Driven Culture:
    • Millennials and Gen Z are often motivated by a sense of purpose and the desire to make a positive impact. Aligning the organization’s mission and values with meaningful social and environmental initiatives can engage and inspire these generations.
  7. Recognition and Rewards:
    • Implementing recognition programs and rewards that appreciate employees’ contributions and accomplishments can motivate and retain talent across different generations. Tailoring rewards to individual preferences and incorporating both intrinsic and extrinsic rewards is essential.
  8. Mentoring and Reverse Mentoring:
    • Facilitating mentoring programs that pair experienced employees with younger employees and vice versa (reverse mentoring) can create opportunities for knowledge sharing, skill development, and cross-generational understanding.

Remember that generational differences are not absolute, and individuals within each generation can have diverse preferences and values. It is essential to create a culture that is adaptable and values the unique strengths and perspectives of employees from all generations. Regular feedback, engagement surveys, and an iterative approach to culture development can help organizations refine and evolve their culture to meet the changing needs and expectations of a multigenerational workforce.

Assume that the reduction in inflation level is faster in India than US, what will be the impact on exchange rate between INR and USD during the period?


If the reduction in the inflation level is faster in India compared to the United States, it can have an impact on the exchange rate between the Indian Rupee (INR) and the US Dollar (USD). Here’s how it may affect the exchange rate:

  1. Appreciation of the Indian Rupee:
    • A faster reduction in inflation in India relative to the US indicates a relatively stronger economy and increased purchasing power of the Indian Rupee.
    • This can lead to an appreciation of the Indian Rupee against the US Dollar, as investors and traders perceive the Indian economy to be more stable and attractive.
  2. Decreased Import Costs:
    • A lower inflation rate in India implies that the prices of goods and services are rising at a slower pace compared to the US.
    • As a result, the cost of imports into India may decrease, leading to a reduced demand for foreign currency (USD) and potentially strengthening the Indian Rupee.
  3. Increased Foreign Investment:
    • A faster reduction in inflation in India can signal a positive economic environment with lower risks of eroding investment returns due to inflation.
    • This may attract foreign investors seeking higher returns and lead to increased inflows of foreign capital into India, driving up the demand for the Indian Rupee.
  4. Impact on Exports:
    • A stronger Indian Rupee can make Indian exports relatively more expensive in international markets.
    • This could potentially lead to a decrease in export competitiveness and a slowdown in export growth, as foreign buyers may seek cheaper alternatives from countries with weaker currencies.

It’s important to note that exchange rates are influenced by various factors, including inflation differentials, interest rates, trade balances, economic policies, geopolitical factors, and market sentiment. Additionally, the impact on the exchange rate may not be immediate and can be influenced by other variables in the global economy.

It’s always recommended to monitor economic indicators, central bank policies, and market trends to have a better understanding of the potential impact on exchange rates between different currencies.

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