Managing in a Global Economy

Managing in a Global Economy Spring 2021

Industry Assignment 4

1

What is your industry’s reference currency ?

• What is the reference currency for your industry?

• What is the currency of sale ? • What is the currency in which you pay your

expenses?

2

What is your industry’s sensitivity to currency fluctuations?

• For simplicity we shall look at this from the point of view of the US Dollar.

• What happens to: • Sales • If the US Dollar is weak against a broad range

of currencies?

• If the US Dollar is strong against a broad range of currencies?

3

What is the price elasticity of demand for its products?  

• What happens to sales if: • Price + • Price – • If price – 1 % and sales + 1 % = unitary price

elasticity of demand

4