You are the CEO of Partido Switch Plc, which is a multinational corporation, incorporated in the US
but invests in many emerging countries including Brazil. Brazil used to have a fixed exchange
regime regarding its currency (Before the year 1999). However, Brazil moved to adopt a free float
exchange rate regime as from January 1999.
a)
Discuss the motives of
Brazil
’s move and its implications on the country’s economy after the
change (60%).
b)
What strategy should you employ in order to manage the exchange rate exposure resulting
from the change in the currency regime (40%)
Please keep a copy of the essay for your own records. The essay should be submitted electronically
via Turnitin.
Specific Guidelines
1-
Your essay should not rely solely on the lecture notes and core textbooks.
2-
You are expected to use external resources and professional databases to learn more about
the topic and provide an adequate analysis. All external sources must be referenced
accordingly.
3-
You are expected to mention all possible techniques to manage the exposure of the
company, but speak in details about one technique of your choice.
4-
A good essay should include real market examples, figures and tables to support your
arguments (especially when talking about Brazil’s situation and the chosen hedging
technique).
5-
You are entitled to use a numerical example of your own when it comes to the hedging
technique.
你是Partido Switch Plc的 席执 官，这是 家跨国公司，在美国注册，但在包括巴 在内的许多新兴国家
进 投资。 巴 曾经有 个关于其货币的固定汇率制度（1999年之前）。然 ，从1999年1 起，巴 开始
采 由浮动汇率制度。
a) 讨论巴 此举的动机以及变化后对该国经济的影响。
变化（60%）。
&
General guidelines:
I.
Your essay should clearly demonstrate analytical, critical and evaluative skills in
relation to international financial management.
II.
It is expected that your essay should demonstrate a
wide background of reading
and research; and only then, you would get an above average grade.
III.
All references should be acknowledged (see Library handout on reference styles
–Harvard approach is strongly recommended).
IV.
Good standards of written English and presentation are expected and marks will
be deducted if such standards are not met.
V.
The length of the coursework should be no more than
1,000 (exceeding the word
limit by even 1 word will cost you 10% of the mark)
.
Writing Well and Avoiding Academic Misconduct
Plagiarism, collusion, and cheating in exams are all forms of academic misconduct which the
University takes very seriously.
Every year, some students commit academic misconduct unintentionally because they did not know
what was expected of them. The consequences for committing academic misconduct can be severe,
so it is important that you familiarise yourself with what it is and how to avoid it.
The University’s
Skills Hub guide to study skills
gives advice on writing well, including hints and tips
on how to avoid making serious mistakes. You will also find helpful guides to referencing properly
and improving your critical writing skills. Make use of the resources there.
If you are dealing with difficult circumstances, such as illness or bereavement, do not try to rush
your work or hand in something which may be in breach of the rules. Instead you should seek
confidential advice from the Student Life Centre. The full University rules on academic misconduct
are set out in the
Examination and Assessment Regulations Handbook
.
