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Question: 1) Explain how movement in a currency's exchange rate affects the activities of both domestic and international companies. Discuss how companies can export successfully despite having a strong currency.
2) Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports. Discuss how international companies can adjust to a weak currency.
3) Why do managers prefer that movements in exchange rates be predictable? How does the Big Mac index help determine whether a currency is overvalued or undervalued, and what are its drawbacks?
4) Explain the differences between a mission statement and a business-level strategy.
5) Briefly describe the strategy formulation process of international organizations.
6) When should managers consider decentralized decision making? What benefits might emerge?
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