Define Case Study of A Company that exports goods?
A company exports goods to country K. Your work as an international cash manager needs you to estimate the value of country K's currency known as "Krank" with respect to dollar. Describe how each of the following would influence the value of "Krank", holding all other things equal. Merge the impact of all of these to develop a complete forecast of currency Krank's movement in opposition to dollar:
1. US inflation has unexpectedly increased substantially while the inflation in country remains low.
2. US interest rates have risen substantially while that of country K remains low. Investors of both of the countries are attracted to high interest rates.
3. US income base has increased considerably although that of country K has remained unchanged
4. US is supposed to place a small tariff on goods imported from country K