2 Which forecasting technique (i.e., technical, fundamental, or market-based) would be easiest to use in forecasting the

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2 Which forecasting technique (i.e., technical, fundamental, or market-based) would be easiest to use in forecasting the future value of the baht? Why?

Recall that Blades plc the UK-based manufacturer of roller blades, is currently both exporting to and importing from Thailand. Ben Holt, Blades’ chief financial officer (CFO), and you, a financial analyst at Blades plc are reasonably happy with Blades’ current performance in Thailand. Entertainment Products, Inc., a Thai retailer for sporting goods, has committed itself to purchase a minimum number of Blades’ ‘Speedos’ annually.
The agreement will terminate after three years.
Blades also imports certain components needed to manufacture its products from Thailand. Both Blades’
imports and exports are denominated in Thai baht.
Because of these arrangements, Blades generates approximately 10% of its revenue and 4% of its cost of goods sold in Thailand.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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