Government Influence on Exchange Rate / Exchange Rate Exposure

Answer the following questions follow APA Style (Links to an external site.)Links to an external site. citations. All the writing parts must be your original writing, DON’T QUOTE , write in your own words. 1. If you were elected to choose between a fixed, freely floating, or a managed float exchange rate system, which would you choose for your home country? Why? Explain and justify your answer 2. Assume that both the U.S. and Europe experience high unemployment. How can the U.S. central bank attempt to adjust the dollar value to reduce this problem? Is the European central Bank likely to go along with the U.S. central bank’s strategy or retaliate? Why? 3. If a government wants to correct a current account deficit, why can’t it simply enforce restrictions on imports? Exchange Rate Exposures 4. Firm X is a small firm in New York City that produces various metals and sells them to local manufacturers. It has no foreign sales and purchases all supplies and material locally. Does transaction exposure exist for this firm? Does economic exposure exist for this firm? 5. 0 Consider a period in which the U.S. dollar weakens against the euro. How will this affect the reported earnings of a U.S. based MNC with European subsidiaries? A5tivat%.`”’ 6. 0 Walt Disney World built an amusement park in France that opened in 1992. Hoo ooyout ink this project has affected Disney’s overall economic exposure to exchange rate movements? (Read the SefiSrhoaEcona one more time and then answer the question)







































































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