Urrency and economic crises. The role of I.M.F. and the exchange rate regimes.
The choice of country is ARGENTINA.
Upon completion of this piece of coursework, a student will be able to:
LO1. Evaluate the role that international financial management has in the running of a MNC.
LO2. Demonstrate understanding of the international financial environment, with reference to foreign exchange markets, international stock markets and global risk.
LO3. Review and discuss the various exchange rate regimes and countriesi?? experience with such regimes and understand the main determinants of exchange rates.
LO4. Analyse the reasons underlying a currency-stock market crisis and its consequences for an economy.
LO6. Understand the effect that exchange rates have on the profitability of a firm that does business internationally and compare different methods to shield exchange rate exposure.
? Critical discussion, preparation and presentation of various data regarding the country case study
? Ability to synthesize and evaluate
? Sufficiency and relevance of the references used
? Clarity of the overall structure of the essay
Over its 50-year history, the IMFi??s attitude towards exchange rates seems extraordinarily erratic. In 1997 the Fund urged Asian countries to devalue or float their currencies; in 1998 it lent billions to Russia and Brazil in order to help them defend their exchange rates; it has praised Hong Kong for its super-strict currency board, and Singapore for its flexible managed float. Given that exchange-rate regimes are, by definition, the central theme in currency crises, such different approaches cannot all be ideal.
In reference to a specific country, write a report discussing all potential exchange rate regimes that could be implemented and convey the countryi??s risk analysis. You should also include a discussion of the linkage between exchange rate regimes and currency i?? stock market crises, preparing a case study for the chosen country.
i?? Countryi??s experience with exchange rate regimes
i?? Short country risk analysis
i?? Advantages and disadvantages of different exchange rate regimes in the chosen country
i?? Collapse of the exchange rate regime and reasons behind this collapse
i?? Link the exchange rate regime with a crisis in the chosen country (or any other country)
i?? Brief discussion of how MNCs were affected by the crisis
i?? Which exchange rate regime is/was appropriate for this country? (consider the country, its economic background, the specific time period, its geographic situation, globalisation and domino effect, its currency reserves, political ability, experience, etc.)
Students are expected to follow the below report structure:
? Title Page
? Executive Summary/Abstract
? Table of Contents
? Introduction and Problem Statement
? Literature Review
? Recommendations for actions that should/could be/have been undertaken
? Bibliography i?? you must utilise the Harvard Reference System
? Appendices i?? optional
? References i?? you must utilise the Harvard Referencing System (SEE LINKS PROVIDED)