International Business 5

A Weak Dollar versus a Strong Yuan

Some reading this case may reach the conclusion that international markets have many risks and that changes in currency values is one of them. They would be right, of course.

However, some may go a step farther and feel that the risks are too many and too great, thus a firm should focus only on domestic markets.

You need to help them understand the difference between avoiding risk (not doing anything that contains risk) and risk avoidance via risk management.

Write your paper on “strategic conversations” & your organization.

Address the following elements in your paper:

• Why is the value of the yuan relative to the dollar so important?
• If you were the CEO of Wal-Mart and were preparing for a meeting with the most vocal members of the US Congress on China’s currency “manipulation,” what would you say to them?
• Assuming that the yuan will appreciate further against the dollar, what should Wal-Mart do?
• If you were an exporter from Argentina, Indonesia, Malaysia, or South Korea and selling to China, would you accept payment in yuan (instead of dollars)?

The requirements below must be met for your paper to be accepted and graded:

• Write between 750 – 1250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
• Use font size 12 and 1” margins.
• Include cover page and reference page.
• At least 80% of your paper must be original content/writing.
• No more than 20% of your content/information may come from references.
• Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
• Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.