international investments and finance

idelity Emrging Market Fund (FEMKX) specializes in investing in,
emerging stock markets
of the world. Miss Catalea, an
experienced hand in,-international investments and finance is rrently interested in th0 Mexican stock markei and is planned to invest US $ 500,000.
Mexico is the first country in Latin America to sign an Economic
Partnership, Political Coordination and Cooperation Agreement
(Global Agreement) with the European Union (EU). This has — —- ormaily helped to boost stock prices in Mexico. II But at the same time Miss Catalea is quite concerned with the volatility and unpredictability of the exchange rates of the-
urrency. Miss Catalea would like to understand _what-
uaily dr-Kies the Mexican exchange rates.

ince the inflation rate is much higher in Mexico than in United States (US), Miss Catalea thinks that purchasing power parity
(PPP) has profound implications in international financial
management.
Miss Catalea conducted Iher own research and has provided the
i following selected ecorlomiciand financial data for your attention.
Scanned with CamScanner

Reference no: EM132069492

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