Identify what the domestic currency is for that country

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Reference no: EM132190529

With your U.S.-based company looking at investing in [the Central American country for your PESTEL analysis], this is the week that you investigate that country's currency and how it is trending on the world market

Identify what the domestic currency is for that country.

Find the current spot exchange rate of that currency against the U.S. dollar (USD). That is, how much does 1 currency unit = ? in USD(s)

Then, find out how much USD$1 = that currency's units

Next, Google the The Economist's "Big Mac Index" (as discussed on p. 279-280, 284) and find out whether your Asian country's currency is undervalued OR overvalued -- and by what percentage? What has been the trend in the last few years? How do these results compare to the countries it borders? Explain (as best you can) what the reasons may be for the performance of each.

Finally, from what you have learned, what would your report back to your home office be regarding the currency of that country?

Reference no: EM132190529

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