BF2207 International Finance

Ethiopia, Kuwait, Peru, New Zealand, or Thailand.

You are tasked to write a report on the selected country using the knowledge you have learnt in the first five lessons.

You are to advise the reader on the recent trends in the currency of the selected country. Examine the various factors that have an impact on the movements of the currency.

Given the research and analysis that you have conducted, you are to summarize your findings and provide relevant recommendations to the reader who may be interest in trading (importing/exporting) or investing in the selected country

In your report, you may consider the following questions as a guide to organizing the structure of the report.

1. Describe the historical development of the particular chosen currency regime and the trend of the balance of payments (current and financial accounts).

2. How did the currency movements affect the country’s competitive advantage and foreign currency reserves?

3. What has been the significant impact (if any) of the following factors on the currency movements? Factors: Inflation, interest rates, growth rates.

4. Select those factors which are relevant and impactful on the currency movements.

5. What is the risk of an international financial crisis and financial contagion from the problems with the particular selected country on its neighbouring countries and trading partners?

6. What kind of recommendations do you think would be useful to manage the problems involved?

7. What kind of advice would you give to companies who wish to consider trading with these countries or considering investing in them? You may also highlight any relevant country and financial risks that should be considered.

You may also combine the experiences of two or more from the list of these countries if the content from one country is insufficient for your discussion.