Getting Started

What happens to the exports of products produced in the U.S. when the U.S. dollar is strong compared to some foreign currencies? When it is weak? Since individual business managers have no ability to affect exchange rates, managers must at least thoroughly understand the impact of exchange rates on imports and exports to adjust plans for exchange rate fluctuations. This assignment will help you understand these issues and how exchange rate fluctuations may affect your organization.

Upon successful completion of this assignment, you will be able to:

• Analyze how several firms, including your own, adapt to the changing international environment.

Resources

• Textbook:Economics for Managers

Background Information

Managers are affected by currency exchange rates because they influence the prices of the firm's inputs and outputs if the firm sells its products or purchases its raw materials abroad. An increase in a nation's exchange rate hurts domestic firms that export to other countries but helps firms that import their raw materials from outside of the country.

Instruct

1. Review the rubric to ensure you understand the criteria for earning your grade.
2. 1. In current news publications, find three examples similar to those in Chapter 15 of the strategic responses of individual businesses to globalization and changes in the currency exchange rates. One of these examples may be your own organization.
   2. Create a table below that compares and contrasts how each firm (including your employer) reacts to the changing business environment.
      1. Defend your answers with clear, insightful thinking.
      2. The table should fit on one page with a reference list on the second page.
   3. Submit your table and reference list by the end of the workshop.

Question 2: What external actions is Question 1: What internal actions is the firm taking in the firm taking in response to changing currency rates? Company . response to changing currency rates? Company Company Company