The International Fisher effect is sometimes described as Uncovered Interest Rate Parity. You work as...

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Finance

The International Fisher effect is sometimes described as Uncovered Interest Rate Parity. You work as treasurer for a major computer distribution company. What would your stance be on investing extra cash in foreign markets? Would it depend on what kind of country you were going to invest in?

Explain in detail your understanding of Interest Rate Parity (IRP) and how it relates to International Fisher Effect (IFE). How does it differ? Give some real world examples.

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