CSUBS MGMT405 Assignment 1

| June 14, 2018

International Management (MGMT405)Professor Ranfeng QiuQ1. Please answering the following questions and providing your explanationsTable 1. U.S. Dollar Exchange Rates for November 6 and 7 in 2001November 6, 2001November 7, 20011USDIn USD1 USDIn USDBritish Pound0.6853541.45910.6825941.465Euro1.114210.8974971.111230.899904Japanese Yen121.150.00825423121.050.008261051. Exchange rate definitionsa. How many dollars were needed to buy one British Pound on Nov,6 and on Nov, 7, 2001 respectively?b. What are the Euro/Pound exchange rates respectively?2. Exchange rate changes:a. Has the U.S dollar appreciated or depreciated versus the British Pound between Nov 06 and November, 07, 2001?b. Has the Euro appreciated or depreciated versus the British Pound between November 06 and November 07, 2001?3. Real Exchange rates:a. Evaluate the effect of a change in the exchange rate between the U.S dollar and the Euro from 0.897$/euro to 0.75$/euro on the Euro price of a U.S made car. How is the change likely to affect the U.S exports and imports?Q2. You are the CFO of a US firm whose wholly owned subsidiary in Mexico manufactures component parts for your US assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year.You will need to pay for supplies that you purchased from Mexican suppliers and you are expected to receive payment from your clients in Mexico as well. What actions, if any, should you take?

Order your essay today and save 20% with the discount code: ESSAYHELP
Order your essay today and save 20% with the discount code: ESSAYHELPOrder Now