FIN 535 WEEK 4 DISCUSSION I

FIN 535 WEEK 4 DISCUSSION I
Government Impact on Exchange Rates Please respond to the following
From the first case study, imagine a situation where the Thai government has decided to peg the Thai Baht to the U.S. dollar. Predict the major effects that such a peg could have on the U.S.- level of inflation and the level of exports or imports to and from Thailand. Determine the fundamental manner in which a fixed exchange rate affects companies such as Blades.
•	From the second case study, analyze the major advantages and disadvantages associated with a floating exchange rate system in Thailand. Determine the central manner in which a floating exchange rate system affects companies such as Blades. Provide a rationale for your response.

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