Trade Balance

Trade Balance

QUESTION DESCRIPTION

It is time to demonstrate what you have learned over the past few weeks!

  • There are 45 multiple choice questions and 5 short answer questions.
    • If you go over the time limit your exam will be automatically submitted.
  • You only have 1 attempt at this exam.
  • Remember to submit the exam when you are finished.
  • there is 1 short essay question.
  • You have 30 minutes to take the final exam part 2, and it must be completed once it has been started.
    • If you go over the time limit your final exam part 2 will be automatically submitted.
  • You only have 1 attempt at this final exam part 2.
  • Remember to submit the final exam part 2 when you are finished.

Part two

For this discussion, we will post the following scenario. You are the CFO of a U.S. firm whose wholly owned subsidiary in India manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Indian rupee is expected to depreciate by 40 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

To support your efforts, you can use an exchange rate website at http://www.x-rates.com/to evaluate the performance of the US Dollar and Indian rupee in the last year, month, and week.

Part Three

For the Week 8 Critical Thinking Exercise, you will review trade balances using the Economist publication (see graphic below) for major global economics for at least four countries and discuss the following data items below relative to trends observed and any reasons you believe this is occurring based on research of these economies and their characteristics relative to production and consumption trends.

  • Trade Balance
  • Current Account Balance
  • Currency Units per US Dollar
  • Interest Rates
  • Budget Balance

The submission should include a detailed written response reporting on trade policies and areas of comparative advantage in production.

Task 1: Create a new discussion topic on or before Friday at 11:55 p.m. by clicking the ‘**REPLY HERE**’ post. In your reply, you will post your answers to the Week 8 Critical Thinking Exercise questions. Your response to the exercise questions should be a minimum of 150 words. Going over the minimum word length requirement is acceptable; however, I am not looking for 1000+ words! It is suggested that you use MS Word or another word processing application that can check spelling/grammar and can show the word count.

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