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.
THE FIRST ATTACHMENT IS FOR THE FIRST ASSIGNMENT
Assignment 2: Minimum of 150 words
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.
THE SECOND AND THIRD ATTACHMENT IS FOR THE SECOND ASSIGNMENT