1. Assume the interest rate in the US is 6% and the UK is 4%. Which currency will be expected to depreciate according to the Fisher Effect? Explain your answer.
2. Define a Peg Exchange Rate regime? What are some of the benefits of pegged currency? Give a real-life example of a currency that is currently pegged.
3. What is the difference between spot rates and forward rates?
4. Discuss the arguments that favor a floating exchange rate system against a fixed exchange rate system. Which system do you think is better.
5. What is strategy? How does strategy relate to a firm’s profitability?
6. Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.
7. Define the term supply chain management. How is supply chain management linked with production?
8. What are the three main factors that affect the decision of where to locate production? Discuss.
1. Assume the interest rate in the US is 6% and the UK is 4%. Which currency will be expected to depreciate according to the Fisher Effect? Explain your answer.
2. Define a Peg Exchange Rate regime? What are some of the benefits of pegged currency? Give a real-life example of a currency that is currently pegged.
3. What is the difference between spot rates and forward rates?
4. Discuss the arguments that favor a floating exchange rate system against a fixed exchange rate system. Which system do you think is better.
5. What is strategy? How does strategy relate to a firm’s profitability?
6. Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.
7. Define the term supply chain management. How is supply chain management linked with production?
8. What are the three main factors that affect the decision of where to locate production? Discuss.