rates and a hrm's Discuss factors that cause and contribute to changes in currency exposure to exchange rate fluctuations. exchange Issue #1: Issue #2: Discuss how currency rate fluctuations and currency risks apply to a firm's: Discuss the effect on Balance Sheet Discuss the effect on Income Statement Discuss the effect on Cash Flow Statement Discuss the economic performance of Germany and the United Kingdom from 1988 to 1992. Discuss the effect of differences in economic performance affect exchange rates Discuss effect on How does the Exchange Rate Mechanism (ERM) work Discuss the shock from the perspective of the periphery countries Discuss the attack on the Hong Kong dollar. Discuss the mechanics of a speculative attack and the "double play" process. Assume the Hong Kong Monetary Authority (HKMA) follows the self-regulating mechanism: What actions would the speculators take? How would the HKMA respond? Provide a detailed evaluation of the actions taken by the Hong Kong government compared with alternatives it might have taken. How does Mundell's Trinity factor into your analysis? Was this a first-, second- or third-generation crisis