Short answer/discussion: foreign exchange

  • From the first e-Activity, suggest the principal way in which foreign exchange rates should be set. Debate whether such rates should be set based purely on transactions, or whether government intervention should be involved. Provide a rationale to support your position.
  • From the second e-Activity, debate the speaker’s position that numbers, such as balance sheets, are basically meaningless unless surrounding circumstances are considered. Include at least one (1) example that relates to international management to support your response.


  • 1) Read the brief article, titled “Foreign Exchange”, located at
  • 2) Watch the video for Chapter 7, titled “Interpret Numbers with Care” (3 min 58 s)
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