1. The Setting: Mondi plc and Exchange-Rate Regimes. Analyze Mondi plc and the economic environment in which they are operating. Pay particular attention to the company's recent performance, its growth strategy, and the global financial markets which affect the Group. 1. (a) How well has the company been doing? Propose a metric and assess the Group's overall performance since it spinoff from its former parent Anglo-American plc. 2. (b) What is Mondi's strategy? How has it expanded and grown? How successful has this growth strategy been and how is it affecting the current performance of its major divisions? (c) Scandinavian countries have followed very different paths in response to the introduction of the Euro (EUR). Finland decided to join the common currency, Sweden adopted a free floating regime for the Krona (SEK), and Denmark pegged its currency, the Danish Krone (DKK), to the Euro whereas Norway and Iceland, who are only associated with the EU, retain full independence in monetary and economic affairs. Focusing on the DKK and SEK, Define pegged and floating exchange-rate regimes, respectively. What are the advantages and disadvantages of fixed and floating exchange rates, respectively, for importers, exporters, monetary policy (central banks), and consumers? Present your conclusions in tabular form. Explain how fixed and floating exchange rates, respectively, would affect a globally operating company such as Mondi plc. 4. (aBonus problem. How credible are fixed exchange rate (currency board) and pegged exchange rates? Research Bulgaria, Argentina in the 1990s, Hong Kong, and Denmark and contrast their experience in light of the credibility of the chosen foreign-exchange regime. 1. The Setting: Mondi plc and Exchange-Rate Regimes. Analyze Mondi plc and the economic environment in which they are operating. Pay particular attention to the company's recent performance, its growth strategy, and the global financial markets which affect the Group. 1. (a) How well has the company been doing? Propose a metric and assess the Group's overall performance since it spinoff from its former parent Anglo-American plc. 2. (b) What is Mondi's strategy? How has it expanded and grown? How successful has this growth strategy been and how is it affecting the current performance of its major divisions? (c) Scandinavian countries have followed very different paths in response to the introduction of the Euro (EUR). Finland decided to join the common currency, Sweden adopted a free floating regime for the Krona (SEK), and Denmark pegged its currency, the Danish Krone (DKK), to the Euro whereas Norway and Iceland, who are only associated with the EU, retain full independence in monetary and economic affairs. Focusing on the DKK and SEK, Define pegged and floating exchange-rate regimes, respectively. What are the advantages and disadvantages of fixed and floating exchange rates, respectively, for importers, exporters, monetary policy (central banks), and consumers? Present your conclusions in tabular form. Explain how fixed and floating exchange rates, respectively, would affect a globally operating company such as Mondi plc. 4. (aBonus problem. How credible are fixed exchange rate (currency board) and pegged exchange rates? Research Bulgaria, Argentina in the 1990s, Hong Kong, and Denmark and contrast their experience in light of the credibility of the chosen foreign-exchange regime