Select a country (other than Malaysia) that experienced large-scale trade deficits, depletion of foreign reserve holdings, and a major currency depreciation/devaluation in the past, followed by the decision to freely float its currency. These events also brought about a severe recession and higher unemployment in that country. Since the currency depreciation/devaluation, however, the trade balance has improved.
Investigate the selected country’s experiences in detail and write a report on the subject. In the report you may:
1. Document the trend in the selected country’s key economic indicators, such as the balance of payments, the exchange rate, and foreign reserve holdings, during the research period.
2. Investigate the cause of the selected country’s balance-of-payments difficulties prior to the currency depreciation/devaluation.
3. Discuss what policy actions might have prevented or mitigated the balance- of-payments problem and the subsequent collapse of the currency.
4. Derive lessons from the selected country’s experience that may be useful for other countries.
1. The report must comprises of an introduction, main body and conclusion.
2. The student index number and the name of all members of the group must be shown clearly on front page. The name of the team leader must come first followed by the team members.
3. Group membership – Minimum: 5 and Maximum: 7
4. Ten or more academic references at the end of your Microsoft words documents would make your submission complete.
5. Length of report is 30 pages with double spacing, font type of Arial and font size of 12.
6. The report needs to go through Turnitin and the acceptable similarity index is capped at 25% or below. The similarity index report is required to attached with the report.
7. Plagiarism is a serious offence and will be dealt with in accordance to the
University’s rules and regulations.
Get Answers on the Above Questions on International Finance
Answer 1: The country that is selected for the purpose of analysis is Argentina. An analysis of the case scenario of Argentina indicates that the country has experienced a large-scale trade deficit, depletion of foreign reserve holdings, and a major currency devaluation in the past. This has been the best country to analyse, as Argentina faced a significant trade deficit whereby the value of its import exceeded the export for a long period of time.
Get completed answers on questions above on international finance from the accounting assignment help Malaysia experts of Student Life Saviour.
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