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1.
A criticism of the International Monetary Fund
(IMF) is that it has become too powerful for an institution that lacks any real
mechanism for accountability. The IMF has determined macroeconomic policies in
those countries, yet according to critics such as noted economist Jeffrey
Sachs, the IMF, with a staff of less than 1,000, lacks the expertise required
to do a good job. Sachs’s solution to this problem is to reform the IMF so it
makes greater use of outside experts and its operations are open to greater outside
scrutiny.

a)
How would you reform the IMF?

b) How would you change the IMF in
its role to promote economic reform in the countries to which it is provides
tranches?

c) Chile and South Korea are
listed as examples where IMF programs succeeded. Why do you think they worked
in those cases?

d) Why do you think that Brazil
and Argentina have not been able to have economic stability despite repeated
IMF programs?

2.
A U.S. company that imports laptop computers
from Japan knows that in 30 days it must pay in yen to a Japanese supplier when
a shipment arrives. The company will pay the Japanese supplier ?150,000 for
each computer, and the current dollar/yen spot exchange rate is $1 = ?110. The
importer can sell the computers the day they arrive for $1,600 each. However,
the importer will not have the funds to pay the Japanese supplier until the
computers have been sold. The importer enters into a 30-day forward exchange
transaction with a foreign exchange dealer at $1 = ?105. What is the profit or
loss per computer if the exchange rate after 30 days is $1 = ?90?

Show your work.

3.
Describe a global standardization strategy
and when you would pursue such a strategy.

Describe a localization strategy and when you would
pursue such a strategy.

This requires more than a one or two line answer. Please
cite examples that you have researched (and cite those sources).1.A criticism of the International Monetary Fund (IMF) is that it has become too powerful for an institution that lacks any real mechanism for accountability. The IMF has determined macroeconomic policies in those countries, yet according to critics such as noted economist Jeffrey Sachs, the IMF, with a staff of less than 1,000, lacks the expertise required to do a good job. Sachs’s solution to this problem is to reform the IMF so it makes greater use of outside experts and its operations are open to greater outside scrutiny.
a)How would you reform the IMF?
b) How would you change the IMF in its role to promote economic reform in the countries to which it is provides tranches?
c) Chile and South Korea are listed as examples where IMF programs succeeded. Why do you think they worked in those cases?
d) Why do you think that Brazil and Argentina have not been able to have economic stability despite repeated IMF programs?

2.A U.S. company that imports laptop computers from Japan knows that in 30 days it must pay in yen to a Japanese supplier when a shipment arrives. The company will pay the Japanese supplier ?150,000 for each computer, and the current dollar/yen spot exchange rate is $1 = ?110. The importer can sell the computers the day they arrive for $1,600 each. However, the importer will not have the funds to pay the Japanese supplier until the computers have been sold. The importer enters into a 30-day forward exchange transaction with a foreign exchange dealer at $1 = ?105. What is the profit or loss per computer if the exchange rate after 30 days is $1 = ?90?
Show your work.

3.Describe a global standardization strategy and when you would pursue such a strategy.
Describe a localization strategy and when you would pursue such a strategy.
This requires more than a one or two line answer. Please cite examples that you have researched (and cite those sources).