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Homework Assignment #3

Due at start of class - Wednesday, April 27, 2016

Chapter #11-Closing Case & Three Questions

Closing Case: Currency Trouble in Malawi

Page 234

Hill & Hult- Global Business Today 9th Edition

Type each question and give answer below each of the four questions.

Answer all questions consistent with the homework guidelines on page 5. It is not necessary to give the written analysis of the case. It is only necessary to answer the three questions.

Management 470-International Business Management

Spring 2016

Closing Case: Currency Trouble in Malawi

QUESTION 1: What were the causes of Malawi’s currency troubles? What types of financial crises did Malawi experience and why? Discuss each concept and element of the question within the framework of an actual and specific example that was covered during the Management 470 classroom discussion or presentation. (9 points)

QUESTION 2: Why did Mutharika resist IMF calls for currency devaluation? Why did the IMF recommend that the currency be devalued? If he had lived and remained in power, what do you think would have happened to the economy of Malawi assuming that he did not change his position? Discuss each concept and element of the question within the framework of an actual and specific example that was covered during the Management 470 classroom discussion or presentation. (8 points)

QUESTION 3: Now that Malawi’s currency has been devalued, what do you think the economic consequences will be? Is this good for the economy? What type of exchange rate system does Malawi follow? Discuss each concept and element of the question within the framework of an actual and specific example that was covered during the Management 470 classroom discussion or presentation. (8 points)