Zestlar Inc is a USA manufacturer of electric vehicles and is seeking to expand by way of new markets and new production sites. It is also entered into negotiations about a possible joint venture with another manufacturer in Singapore. Zestlar will not know for months whether the joint venture will succeed but if it does, Zestlar will require to fund the joint venture by subscribing for shares amounting to 20 million Singapore dollars within a year from now. Zestlar is also currently exporting cars to Spain and Portugal but the strong dollar against the euro hurts sales of Zestlar cars in Spain and Portugal. In the Spanish and Portuguese markets, Zestlar faces competition from Swedish and Japanese car makers, such as Volvo and Mitsubishi, whose currencies remain stable relative to the euro.

1. What kind of measures would you recommend so that Zestlar can enter into the joint venture successfully in the event that the Singapore dollar appreciates against the US dollar?

2. What strategies would you recommend so that Zestlar could maintain its market share in Spain and Portugal.

3. Outline how Zestlar could assess the country risk, prior to any investment in Singapore.