FIn 535 Week 4 Discussion

FIN 535 Week 4 Discussion 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.

Answer Detail

Get This Answer

Invite Tutor