4. Recently, financial markets have become highly integrated. This development 5. Japan has experienced large trade surpluses. Japanese investors have responded to this by 6. Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = One year later the exchange rate is the same, but the Italian government €1.00. has expropriated your firm's assets paying only in compensation. This is an €80,000 example of
4. Recently, financial markets have become highly integrated. This development 5. Japan has experienced large trade surpluses. Japanese investors have responded to this by 6. Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = €1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only €80,000 in compensation. This is an example of