Need to answer 5 question total 2 page Global Enterprise Development Short Paper. (Plagiarism Free)
I need support with this Economics question so I can learn better.
Read the case at the end of Chapter 10 in the text. Write your thoughts on these questions in the form of a Short Paper:
- What does the recent economic history of Brazil tell you about the relationship between price inflation and exchange rates? What other factors might determine exchange rates for the Brazilian real?
- Is a decline in value of the real against the US dollar good for Embraer, bad for Embraer, or a mixed bag? Explain your reasoning.
- What kind of exchange rate risks is Embraer exposed to? Can Embraer reduce these risks? How?
- Do you think Embraer’s decision to try and hedge against further appreciation of the real in the early 2000’s was a good decision? What was the alternative?
- Between mid-2014 and early 2015 the real depreciated significantly against the US dollar. What do you think the impact was on Embraer? Explain your reasoning.