Assignment:
Project
Write an essay answering all these questions.
1. What are the potential effects of a change in the Euro/ NZ$ exchange rate for an Italian entrepreneur who frequently does business in New Zealand?
2. How does a weak Swiss franc benefit a swiss entrepreneur who exports much of his product?
3. Explain the different roles of the International Monetary Fund and the World Bank.
4. Mike just signed a US $1 million contract to sell small engines to a Slovenian manufacturer. Delivery will take place in 1 month, but he does not expect to receive his payment in euros for 3 months. What are the potential risks? What are some of the ways to mitigate these risks?