Explain why an MNC may invest funds in a financial market outside its own country.how MNCs can make use of each international financial market 1. Inflation Effects on Exchange Rates: Assume that the...

Explain why an MNC may invest funds in a financial market outside its own country.how MNCs can make use of each international financial market

1. Inflation Effects on Exchange Rates: Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar?