[Solved] International Business Concepts 10

Topic 1; Chapter 10: The Foreign Exchange Market

QUESTION 1: You are the CFO of a U.S. firm whose wholly-owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

Rubric for all discussion assignments.

Ten points maximum: 

1. Question answers content reference to international business concepts

10 points

2. Question answers content reference to international business 

10 points

Total:

20 points