International Financial Management

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On the attached Key Outline please add the following information:

– Discuss how purchasing power parity would impact this specific venture in this particular country. The existence of purchasing power parity is an advantage for making a foreign investment. If there were no purchasing power parity, this would be a disadvantage for making a foreign investment in a country with high inflations rates and an advantage for making a foreign investment in a country with low inflation rates.
-Discuss how interest rate parity parity would impact this specific venture in this particular country. The existence of interest rate parity would be an advantage for making a foreign investment. If there were no interest rate parity, this would be a disadvantage for making a foreign investment.

Part 2:

Identify the advantages and disadvantages of this investment based on the capital structure of the firm.

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