You work for firm ABC situated in Australia, and your boss has become concerned about the current economic environment, especially as it is related to the different types of exposures that your firm may face in the near future. You are asked to provide a report, which evaluates how your firm is exposed, the risk management implications for your firm, and possible hedging strategies. You are also required to provide a recommendation for what your firm should do.

Information about Firm ABC:

1. The firm imports medical equipment to Australia from foreign suppliers located in Japan, the United States and the Switzerland.

2. The firm also exports pharmaceuticals from Australia to Singapore. 3. The firm has a payment of 600,000,000 JPY due in 3 months to their supplier in Japan, a payment of 5,000,000 USD due in 3 months to their supplier in US, and a payment of 7,000,000 CHF due in 2-month time to their supplier in Switzerland.

4. The firm is due to receive 9,000,000 SGD from their customer in Singapore in 4 months.

5. The firm also have 10,000,000 CHF deposited in a bank in Zurich and the deposit is due to mature in 2 months. The money was deposited 10 months ago at an interest rate of 1.75% p.a.

Use the information above to consider the types of exposure your firm may face.

and discuss the firm's risk management implications and design hedging strategies for the firm. You also need to evaluate the hedging outcome - what will the outcome be if exposure is hedged and what will the outcome be if exposure is not hedged.

Also should consider the effect of the current economic environment on foreign exchange market, demand for exports/imports, supply of exports/imports and other relevant economic indicators, and relate this to how this may impact the firm

Question 16 1 pts Which economic philosophy presents (1) the rules and laws that give the economy its overall structure and (2) the ways in which that structure essentially governs the activities of producers, consumers, and other individual economic actors? O Neoclassical O Keynesian O Marxism O Marxism and Keynesian Question 17 1 pts Investor decisions are central to which ideology? O Neoclassical O Keynesian O Marxist O Marxist and Keynesian Question 18 1 pts Marx focused on: O Capitalism O The distribution of income O Transition from one economic system to another O All of the aboveQuestion 2b) Andaikan bahawa bank pusat meningkatkan sasaran kadar faedahnya dalam model Keynesian Baru. Terangkan apakah kesan keseimbang Suppose that the central bank increases its interest rate target in the New Keynesian model. Explain what the equilibrium effects are. (5 marks) Your answer Question 2c) Andaikan bahawa jumlah faktor produktioneningkat dalam model harga tegar Keynesian Baru. Terangkan apakah kesan keseimbangan. Suppose that total factor productivity rises in the New Keynesian sticky price model. Explain what the equilibrium effects are. (5 marks)Question 1: Goods market In the Keynesian cross, assume that the consumption function is given by C = 500 + 0.8 (Y - T) Planned investment is I = 1000 - 50r Government purchases and taxes are both 1000. a. Suppose that the real interest rate (r,) is 5. Write the equation of the planned expenditure (PE,). Draw planned expenditure (PE, ) as a function of income. Label this graph "figure 1". b. Draw a 450 line in figure 1 and find the value of equilibrium level of income on the Keynesian cross (Y]). c. Calculate the government purchases multiplier. And interpret your answer. d. Suppose that the real interest rate (72) rises to 10. Write the equation of the planned expenditure. Graph planned expenditure (PE2) as a function of income in figure 1. e. Find the value of equilibrium level of income on the Keynesian cross (Y2). f. From questions above, we get two combinations of real interest rate and income at which the goods market is in equilibrium. Plot the IS curve by using these two combinations of real interest rate and income on a new graph (label it "figure 2") and label the IS curve IS1.Use the Keynesian cross model to predict the impact of the following on equilibrium GDP. In each case, state the direction of the change and give a formula for the size of the impact. An increase in government purchases. the product of the government-purchases multiplier and the change in government spending the product of the tax multiplier and the change in taxes the change in government spending the change in taxes Use the Keynesian cross model to predict the impact of the following on equilibrium GDP. In each case, state the direction of the change and give a formula for the size of the impact. An increase in taxes the product of the government-purchases multiplier and the change in government spending the product of the tax multiplier and the change in taxes the change in government spending the change in taxes Use the Keynesian cross model to predict the impact of the following on equilibrium GDP. In each case, state the direction of the change and give a formula for the size of the impact. Equal-sized increases in both government purchases and taxes the product of the government-purchases multiplier and the change in government spending ) the product of the tax multiplier and the change in taxes the change in government spending the change in taxes