Discuss how malaysia exporters will be affected

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Exporters in Malaysia usually receive payments in United States of America dollars (USD). With the United States of America (USA) printing more USD to stimulate its economy, Asian countries are concerned over the future value of the USD. Any changes in the value of the USD will affect the profitability of Malaysia exporters and their competitiveness.

Required:

(a) Explain whether Ringgit Malaysia will appreciate or depreciate against the USD over time if USA increases its supply of money.

(b) Discuss how Malaysia's exporters will be affected by the future changes in the value of USD.

(c) Identify TWO (2) methods that can be employed by Malaysia's exporters to hedge against transaction exposure.

Reference no: EM133070397

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