Management Question

1. In 2014, the euro was trading at $1.35 on the foreign exchange market. By 2015, the rate had fallen to $1.10, due to falling European interest rates. Explain the fall in the price of a euro using supply and demand curves, and in words.

2. Using shifts in supply and demand curves, describe how a change in the exchange rate affected your industry. Label the axes, and state the geographic, product, and time dimensions of the demand and supply curves you are drawing. Explain what happened to industry price and quantity by making specific references to the demand and supply curves. How can you profit from future shifts in the exchange rate? How do you predict future changes in the exchange rate?

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The assignment is to draw supply and demand curve graphs and explain the above scenarios/questions.

Please answer the question from a manager’s point of view, assignment should be 1.5 – 2 pages APA format. Site all the references used. At least one scholarly journal related to economics/organizational behavior should be used along with the textbook.

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