You're a recent graduate of Champlain College and landed a great job in Beijing as a junior financial analyst for Chuck Schwable International, a leading investment firm whose name bears no resemblance to a well-known investment firm.

Schwable has recently been hired by Appleton, a leading multinational tech giant looking to establish a manufacturing headquarters in China. Appleton is relatively new to China, and Schwable needs people on this account who understand exchange rates. This is it...it's your big chance to make a great first impression and show off the skills you gained in your MGMT 240 finance class.

Your primary job on this account is advising on the exchange rate between China and the United States. Your new supervisor, Png'n, wants to see if you know your stuff and asks you to provide answers to the following questions:

1. What is the current China / U.S. exchange rate using direct and indirect quotes? What does this rate mean for Appleton's manufacturing operations in China?
2. What if the Chinese Yen becomes inflated?What options does Appleton have to maintain a consistent level of profitability?
3. What does it mean for China to have a trade deficit with the United States? How does this impact Appleton's manufacturing decisions?