Review Group Problems G11-1: Exchange Rate Effect on Industry and G11-2: Exchange Rate Effects on Your Firm. Select one problem that relates to you and your current position in the work environment. Support your response with personal experiences or examples (1k).

Alternate Scenario: If you are in an industry that does not deal with any foreign exchange transactions, use the petroleum industry for this assignment. Imagine that you work for a domestic oil refinery, and answer either question G11-1 or G11-2. You do not work for an oil producer, but rather for a refinery, which turns crude oil into many different petroleum products, from jet fuel to gasoline, which are then sold to world markets. You have the option of purchasing crude oil from U.S. sources or from various foreign countries. You must purchase crude oil in order to make products that you can sell in the United States or in other countries.

G11-1 Exchange Rate Effects on Industry

Using shifts in supply and demand curves,

describe how a change in the exchange rate

affected your industry. Label the axes, and state

the geographic, product, and time dimensions of

the demand and supply curves you are drawing.

Explain what happened to industry price and

quantity by making specific references to the

demand and supply curves. How can you profit

from future shifts in the exchange rate? How do

you predict future changes in the exchange rate?

G11-2 Exchange Rate Effects on Your Firm

Describe how a change in the exchange rate affected

your firm. Explain what happened to your price

and quantity. How can you profit from future shifts

in the exchange rate? How do you predict future

changes in the exchange rate?