Assignment
Discuss the following in your case study analysis:
1. Define currency risk.
2. Discuss factors that cause and contribute to changes in currency exchange rates and a firm's exposure to exchange rate fluctuations.
3. Discuss how currency rate fluctuations and currency risks apply to a firm's:
Discuss the effect on Balance Sheet
Discuss the effect on Income Statement
Discuss the effect on Cash Flow Statement
4. Discuss the economic performance of Germany and the United Kingdom from 1988 to 1992.
Discuss the effect of differences in economic performance affect exchange rates
How does the Exchange Rate Mechanism (ERM) work
5. Discuss the attack on the Hong Kong dollar.
Discuss the mechanics of a speculative attack and the "double play" process.
6. Provide an evaluation of the actions taken by the Hong Kong government compared with alternatives it might have taken.
How does Mundell's Trinity factor into your analysis?
Was this a first-, second-, or third-generation crisis?
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.