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Part 2: Government and Trade 200 points 1. Trade Relationship between CountriesAssess the historical and current trade relationship with the BRICS nation and the United

Part 2: Government and Trade 200 points

1. Trade Relationship between CountriesAssess the historical and current trade relationship with the BRICS nation and the United States. Describe the balance of trade in goods and services between the two nations, it's growth or decline, and its potential to be an area of conflict or cooperation. Evaluate how the BRICS and USA governments support or impede trade between one another by using free trade agreements or interventionist policies. Explain the rationales for doing so and estimate how this may affect SOLA's success in the BRICS nation.

2. Financial EnvironmentAnalyze the historical and current exchange rates between the BRICS nation and the United States. Determine if the currencies are floating, fixed or pegged. Explain how currency fluctuations can impact the profitability of SOLA's operations. Which financial tools and exchange instruments do you recommend SOLA uses to mitigate currency risk?

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