Reference no: EM132015106

Assignment 1

The management team of Target is concerned about the economic factors that could impact the organization, particularly as the company transitions from being national to a global organization.

They would like you put develop a presentation for them that describes, discusses, and analyzes essential economic factors for their company.

For this assignment, your requirement is to create a presentation that covers

1. The role of banks and how they can use foreign exchange in the purchasing and selling product in the selected market place.

2. Present how exchange rates within your selected Country's market will impact the US bottom line. Give a specific example.

3. Present recommended techniques the company can use to protect them from future changes in exchange rates

You are to have at least one chart, graph or table

Length: 5-10 slides (with a separate title and reference slide, not counted towards 5-10 slide requirement).

Notes Length: Have at a minimum 80-200 words for each slide - these notes should be in the Speaker Notes section of the PowerPoint slides.

Be sure to include citations for quotations and paraphrases with references in APA format and style.

Make sure your presentation follows good PowerPoint design principles (e.g., readable font, uses one template, one inch borders around the slides) and contains transitions, builds, and animation when appropriate.

Assignment 2

Use the text book and any other source, as long as you cite it. You must use live relevant data from this past week for the answers to 1, 2, 4.

1. What is the spot rate for the British pound (GBP) on Wednesday in terms of the U.S. dollar (USD)? Or, from the U.S. perspective, what is the direct quote on pounds?)

2. What is the spot price for the USD on Wednesday in terms of the Swiss franc (CHF)? (Or, from the U.S. perspective, what is the indirect rate on Swiss francs?)

3. Using your answers from #1 and #2 above, calculate the cross rate of exchange between the British pound (GBP) and the Swiss franc (CHF) (need to see your math).

4. Calculate the annualized forward premium or discount on six-month forward yen (need to see your math).

5. Based on your answer to #4 above, if you are planning to go to Japan in 6 months, should you buy your yen today? Why or why not?

6. According to the international Fisher Effect, if the real interest rate is 4%, if the US inflation rate is 5% and the Japanese inflation rate is 7%, then what is the nominal interest rate in the US? What is the nominal interest rate in Japan? Need to see math.

7. What is the expected difference between interest rates in the United States and Japan (do not need to see math, this can be answered in words and not numbers)

8. Did the value of the Canadian dollar (CAD) rise or fall between Tuesday and Wednesday (hint - do not always view currency from a US perspective)?

9. What are the 2 currencies used in Cuba (you will need to do some external research)? Why are there 2 currencies?

10. What are some of the main reasons not all countries in the EU have adopted the Euro (you will need to do some external research)?