Discussion

TEXTBOOK:

Peng, M. W. (2010).

Global (2nd ed.). Mason, OH: South-Western Cengage Learning. ISBN10: 0324560702 or ISBN13: 9780324560701.

1. Read Chapters 7”“9 in the textbook.

2. Read ―The Factors That Determine Foreign Exchange Rates‖ and research historical exchange rates. Suppose that U.S. $1 equals 0.7778 EU in New York and U.S. $1 equals 0.7775 EU in Paris. Explain how foreign exchange traders in New York and Paris can profit from these exchange rates. Write a three-page, APA formatted paper to illustrate your response.

OR

3. Read ―The Factors That Determine Foreign Exchange Rates.‖ Should China revalue the yuan against the dollar? Why or why not? If so, describe what impact this might have on (1) U.S. balance of payments, (2) Chinese balance of payments, (3) relative competitiveness of Mexico and Thailand, (4) firms such as Wal-Mart, and (5) U.S. and Chinese retail consumers. Write a three-page, APA formatted paper to illustrate your response