Your answer for each question should only be no more than two short paragraphs, and your answers should follow these guidelines.
1. Response correctly indicates if the intervention effort was indirect or direct and explains choice with sound reasoning.
2. Response correctly indicates what type of intervention was performed by the Thai government, details the differences between types of intervention, and discusses
which type would be more effective in increasing the value of the baht, including an explanation.
3. Response thoroughly examines the potential impact on U.S. inflation if the Thai and USD exchange rate was fixed, shares opinion regarding the impact on different firms, and discusses how some companies are affected by a fixed exchange rate.
4. Response discusses potential disadvantages of the floating exchange rate system in Thailand, comments on whether and to what extent company contributes to disadvantages, and reviews the impact of such an exchange rate on companies such as Blades.
5. Response indicates the impact of the swap arrangement on the Thai baht’s value and discusses the impact of the swap on Blades.
Pre-Written Pages: 3
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