Question - Exchange Rate Effects on Your Firm

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Problem -

Complete your response in 500 words. Support your response with personal experiences or examples.

Use the petroleum industry for this assignment. Imagine that you work for a domestic oil refinery, and answer question. You do not work for an oil producer, but rather for a refinery, which turns crude oil into many different petroleum products, from jet fuel to gasoline, which are then sold to world markets. You have the option of purchasing crude oil from U.S. sources or from various foreign countries. You must purchase crude oil in order to make products that you can sell in the United States or in other countries. Prepare this assignment according to the guidelines found in the APA Style Guide.

Question - Exchange Rate Effects on Your Firm

Describe how a change in the exchange rate affected your firm. Explain what happened to your price and quantity. How can you profit from future shifts in the exchange rate? How do you predict future changes in the exchange rate?

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A hypothetical case of refinery is selected to discuss about the impact of Foreign exchange rate and dynamics.The discussion is about the variation of the exchange rates on the price and quantities.Impact on the profit margins also discussed as well.References are given.

Reference no: EM132410897

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