2. Using a spreadsheet, conduct a consolidated net cash flow
assessment of Blades, Inc., and estimate the range of net inflows and outflows
for Blades for the coming year. Assume that Blades enters into the agreement
with Jogs, Ltd.

3. If Blades does not enter into the agreement with the
British firm and continues to export to Thailand and import from Thailand and
Japan, do you think the increased correlations between the Japanese yen and the
Thai baht will increase or reduce Blades’ transaction exposure?

4. Do you think Blades should import components from Japan
to reduce its net transaction exposure in the long run? Why or why not?

5. Assuming Blades enters into the agreement with Jogs,
Ltd., how will its overall transaction exposure be affected?

6. Given that Thai roller blade manufacturers located in
Thailand have begun targeting the U.S. roller blade market, how do you think
Blades’ U.S. sales were affected by the depreciation of the Thai baht? How do
you think its exports to Thailand and its imports from Thailand and Japan were
affected by the depreciation?