Unit IV Assignment
For this assignment, you will practice calculating exchange
rates and examine some of the key factors that have an impact on foreign
exchange.
Click here to access the Unit IV Assignment worksheet.
Click here to access some exchange-rate examples and
practice questions.
Information about accessing the grading rubric for this
assignment is provided below.
MBA 6601, International Business
Unit IV Assignment
Complete Part1 and Part 2 of this assignment, and submit as
a single document for grading.
Part 1:
Your company is deciding to expand to the following
countries, and you and two other managers will have to visit these countries to
set up operations. You have $1,500.00 to convert in each currency. Compute the
exchange amount for each, and complete the table.
While you are visiting each of these countries, you have to
buy supplies and equipment for your operations. You want to determine what it
is costing you in U.S. dollars. Utilizing the same exchange rates given above,
compute the costs into U.S. dollars, and complete the table:
Part 2:
Pedro in Costa Rica wants to purchase some wild Atlantic
salmon from Hans in Iceland. The fish are purchased in Iceland’s currency, the
krona. Pedro’s brother works in a bank and will take care of the transactions
free of charge. Pedro has 1,000,000 colons to start with. (There is no
transaction fee, and shipping is not calculated at this point.)
How much krona does he have to work with?
Answer:
The next day Hans decides to purchase some bananas from his
new trading partner in Costa Rica. Han’s sister works for an import/export
agency and can arrange the transaction in euros with no fee. Hans takes all of
the krona he received from Pedro and proceeds to convert his currency to colon.
(Note, one country’s currency experienced some weakness overnight.)
How much colon does he have to work with? List your steps
and the results you achieved with each step. Also, explain some factors that could
cause the country’s currency to weaken.
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