Expected impact of the resulting policy

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Suppose your corporation operates in MS Delta and imported inputs are used in final product. The final item is then exported to the rest of the world. The Secretary of the Treasury, Tim Geithner, made the following statement to the Chinese students at Beijing State University some time ago in an attempt tame fears that the United States is following an easy monetary policy which is leading to the United States dollar losing its power against the currencies of its trading partners: The United States is committed to a strong dollar policy! If you believe the Secretary, what is the impact of his stated policy on your business? Assume you do not think that the statement does have any credibility. What is the expected impact of the resulting policy on your business? In both cases, under what situations, would your business may be better off?

Reference no: EM1373956

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