Question 1 (Related to the first evaluation criteria – see table below)
Use the theories of exchange rates studied in the class to explain why the value of the US dollar has been falling recently (https://tradingeconomics.com/united-states/currency)
Question 2a (Related to the second evaluation criteria – see table below)
What does a fall in the US dollar mean for the businesses operating out of your country (both domestic and foreign owned ones)?
Question 2b (Related to the second evaluation criteria – see table below)
Choose a domestic company from your country. Explain its trading relationships with other countries and illustrate the impact of the US dollar on business using this company as an example.
Question 3 (Related to the third evaluation criteria – see table below)
Evaluate (using different economic indicators) if a fall in the value of the dollar benefits the economy of your country
It assesses the following learning outcomes:
• Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of exchange rates.
• Evaluate, analyze and contrast economic decisions and their impact of the global business context.
Sample Solution