Unit VI Scholarly Activity Complete both parts of this assignment and submit as
ID: 1196087 • Letter: U
Question
Unit VI Scholarly Activity Complete both parts of this assignment and submit as a single document. MBA 6601, International Business 5Part OneYour company is deciding to expand to the following countries, and you and two other managers will have to visit thesecountries to set up operations. You have $1,500.00 to convert in each currency. Copy and paste this table into a newdocument and compute the following:Country/currency USD value/rate (as of 08/14) Exchange amountJapanese yen $102.28Euro $0.75British pound $0.60Utilizing the same exchange rate, while you are visiting each of these countries, you have to buy supplies/equipment foryour operations; you want to determine what it is costing you in U.S. dollars. Please compute the following:Japanese yen Computer (¥167,000.00) $Euro Desks/chairs (€1,125.00) $British pounds Printer (£575.00) $Part TwoRespond to the following questions. Not counting Part One, your paper should be three pages in length, double spaced,and use APA style guidelines.1. Within the past decade, the IMF has provided financial assistance (bailout) to Greece (2010, 1st quarter), Iceland(2008, 4th quarter), Ukraine (2014, 2nd quarter), and Hungary (2008, 4th quarter). Describe the recovery processin each country as a result of this assistance. Also determine whether or not there was an increase/decrease in: GDP, inflation, and unemployment.Information about accessing the Blackboard Grading Rubric for this assignment is provided below.
Explanation / Answer
Part One:
Japanese yen Computer (¥167,000.00) Exchange rate: 102.28
Currency equivalent: 167,000.00 / 102.28 = $1,632.77.
Euro Desks/chairs (€1,125.00) Exchange rate: 0.75
Currency equivalent: 1125 / 0.75 = $1,500.
British pounds Printer (£575.00) Exchange rate: 0.60
Currency equivalent: 575 / 0.60 = $958.33.
Part Two:
Greece: The bailout of Greece by IMF has not been successful. The financial problems have aggravated and now Greece is on the verge of exit from the European union as it has not been able to repay its debt. The GDP has declined from €226 billion in 2010 to €182 billion in 2013. the inflation has declined from 5.2% to -2.4% in 2014, and unemployment has increased from 12.7% in 2010 to 26.6% in 2014. These statistics clearly indicated that Greece economy has not recovered at all.
Iceland:
Iceland thought it wise to indict bankers who committed serious financial crimes that contributed to the collapse of the economy. By paying off loans for consumers, forgiving homeowner debts from the IMF bailout, and throwing the offenders in prison, Iceland has bounced back. It's economy has recovered and is growing faster than both the US and European economies.
Ukaraine:
Ukraine's overall bailout has been risky and there seems to be protracted debt restructuring efforts on the anvil. There is uncertainty about the duration and depth of the conflict. The inflation rate is already 30% and interest rates has been raised to 20% from a low of 7% a year ago. The economy is heading towards a recessary state.
Hungary:
Hungary's debt-GDP level dropped from 83% to 77% and the structure of the debt has also changed. The debt has become less vulnerable to the ups and downs of the foreign exchange rates. Hungarians have returned to active work force and makes the employment figures a key element of recovery.
Blackboard Grading Rubric for this assignment: Do not have the subject knowledge to detail.
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