Given the success in El Salvador, do you think the other countries in CAFTA-DR should adopt the U.S. dollar as their currency? Why or Why not?

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It’s a long shot, but I’m hoping your company can gain access to this text for reference to answer the questions; DRS: Daniels, J. D., Radebaugh, L. H. & Sullivan, D. P. International business. (15th  ed.) If you cannot gain access to this text I have provided you with a few examples of answers to these questions. REWRITE them in your own words in a way that no one can tell you used my examples as a template. Please try and retrieve your own quantitative information (country specs regarding trade/monetary policies, etc) from research online.

 

 

 

  1. Given the success in El Salvador, do you think the other countries in CAFTA-DR should adopt the U.S. dollar as their currency? Why or Why not? (9-1 on page 332 of DRS)

 

  1. In Chapter 7, we mentioned the Mexico and Canada have kept their own currency, even though they are partnered with the U.S. in NAFTA. Why do you think they have decided not to adopt the U.S. dollar as their currency even though El Salvador and Ecuador, who are not members of NAFTA, have adopted the dollar as their currency? (9-2 on page 332 of DRS)

 

 

  1. Read the case study “Does the Devil Really Wear Prada?” DRS  392-395. Based on the required readings and the case study discuss briefly:

 

  • Do you agree with the decision to list an IPO or should Prada consider other financing options? What are the pros/cons of such options?
  • Are there any downsides to Prada’s decision to list in Hong Kong?
  • What types of foreign exchange risk does Prada face?
  • What advice would you give them to hedge against their risks?

 

  1. Do you think most international trade might eventually take place through websites like Alibaba.com? How might that influence your interest in importing and exporting? (14-2 on page on page 562 of DRS)

 

  1. Identify a product you would like to import. Visit alibaba.com, go to the advanced search field and enter it. Select required criteria and click on search. Review the list of companies that qualify. Find a Suitable seller. Analyze this product for ease, usefulness and potential value. (14-3 on page 562 of DRS) – no examples given for this question

 

 

 

  1. Provide three recommendations that you would offer a SME (Small & medium enterprise), based on the opportunities and constraints of electronic websites like Alibaba.com, as it considers engaging exporting or importing. (14-6 on page 562)

 

  1. How transparent do sites like alibaba.com make import-export transactions? To what degree would you worry about fraud? What safeguards would you seek? (14-7 on page 562)
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