BBB4M – International Business
BBB4M – International Business
Barriers to Trade
Pages 28 – 37
Assignment 2 - Currency Fluctuations
|1. |a) |In past lessons we have identified many factors that can have an affect on the value of a country’s currency. List as many |
| | |as you can. |
| |b) |Give 3 reasons why the CAD has risen against the USD. |
|2. | |Exploring the site. Note that you are expected to know the most important currencies and their respective |
| | |countries as displayed in the cross rate table. |
| |a) |Use the quick cross rate table to perform the following conversions: |
| | |Mexican Pesos ( Euros |
| | |British Pounds ( Russian Rubles |
| | |2000 CAD ( Chinese Yuan |
| |b) |Click on site map located in the bottom right hand corner of the screen. Click on the Full Universal Currency Converter. |
| | | |
| | |Perform the following conversions: |
| | |NOK (Norwegian Kroner) ( SGD (Singaporean Dollar) |
| | |THB (Thai Baht) ( HKD (Hong Kong Dollar) |
| | |ARS (Argentine Peso) ( BRL (Brazilian Real) |
| | |25 KWD (Kuwait Dinar) ( LAK (Laotian Kap) |
| |c) |Perform the KWD ( LAK transaction, without the aid of the on-line converter to get the conversion directly, using a pen and |
| | |calculator only. You will need to perform this task on tests and on the final exam. |
|3. | |Why are the CAD/USD, CAD/UK Pound Sterling, and CAD/Yen exchange rates so important to Canadian businesses and exporters? |
| | | |
| | |Which Canadian industrial sectors have benefited from a strong dollar and which have been adversely affected? Some research |
| | |may be needed here. |
|4. | |Scroll down further on the site to the Historical Interactive Converter. |
| | | |
| | |Find the CAD/USD exchange rate on Feb 1 2000. Compare this conversion rate with today’s latest exchange rate. Calculate |
| | |the percent increase in the value of the CAD relative to the USD. |
| | |Beginning Dec 01 2004 and ending Dec 31, did the CAD strengthen or weaken against the AUD during this period? |
| | |How much would a Japanese buyer have to spend in Yen to buy a shipment of goods worth 100,000 CAD? |
| | |What was the currency of Spain before it adopted the Euro? |
| | |Suppose an investor has two options: Invest 1000 000 CAD on Sept 01, 2004, @ 4% for 1 year in a Canadian bank; or, convert |
| | |the money into Pounds Sterling on Sept 01, 2004 and invest the Pounds @ 5% for 1 year in a U.K. bank. Perform the necessary|
| | |calculations and decide which option is best for the investor given that she must convert the Pounds Sterling into CAD on |
| | |Sept 01, 2005? If the answer is not what you expected, try to provide an explanation using historical exchange rate |
| | |information. |
|5. |a) |Can you provide a clear and concise explanation as to why an exporter might want to consider using a forward contract? |
| |b) |Can you explain clearly how it is possible for an international company to earn a profit even if its performance in its |
| | |domestic market is yielding a loss? |
[pic]
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- international business machines corp. profitability ratios
- international business management mba pdf
- international business school rankings
- international business careers
- types of international business models
- best undergraduate international business programs
- international business current events 2019
- international business current event articles
- current international business issues
- international business news articles 2019
- international business news headlines today
- international business articles 2019