Q1. If the US economy is operating near full employment and the exchange rate increases (the dollar appreciates), explain why the Federal Reserve will be less inclined to raise interest rates.
Q2. Find examples in current news publications of the strategic responses of individual businesses to changes in currency exchange rates. Are these firms adapting to the changing international environment, or are they engaged in political action to try to modify that environment?
Q3. When McDonald's introduced its Dollar menu strategy in fall 2002, why was the company assuming or hoping that the demand for its products was elastic? Did this appear to be the case?
Q4. Compare and contrast McDonald's strategies in China with those of Wal-Mart in Mexico.