The Rapid Rise of the Indian Rupee

and answer the following questions.

The closing case describes the rapid rise of the Indian rupee and the flow-on effects of this for its domestic industries.

1.1. Which sector/s do you think would be better able to weather the strengthening of the rupee in the medium to long term? Why?

1.2. Reflect on the different strategies explored by the various sectors to respond to the currency crisis. Would some strategies have worked for some sectors but not for others? Why or why not?

1.3. Is currency hedging the best way for companies to manage their foreign currency exposure? If not, what are the best alternatives? Explain your answer/s.

1.4. Should governments get involved in keeping national currencies at certain exchange levels? Why or why not?

QUESTION 2:

Read the CLOSING CASE: The great subprime crisis of 2007 in Page 354-356.

The closing case describes the factors the contributed to the great subprime mortgage crisis in the U.S. and how its tentacles resulted in global consequences.

QUESTION: What international financial management lessons can be learned from the subprime crisis?

WHY DO WE FOCUS ON DECISION MAKING?

1. COMPETITIVE PRESSURE from GLOBALIZATION

2. RESEARCH ON HOW DECISIONS ARE MADE

3. VOLUME OF DATA AVAILABLE

4. REAL IMPACT ON OUR LIVES

IS THIS ANOTHER MATHS SUBJECT ? NO !!

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