writing a report on currency exchange and stock exchange. should follow A B C on the bottom of this question.

Rubrik for Exchange Rate/Stock Portfolio Assignment

Above is a simple spreadsheet to track the currencies against the US Dollar and to track stock values of 4 stocks (2 domestic, 2 international). This format is not required but something similar should be used.

The hard part, and something brokers get paid millions to do, is figure out why they are doing what they are doing. Was there a big terrorist bombing in Pakistan that caused their currency to devalue? Did the goodwill between North and South Korea from the Olympics cause a strengthening of their currency? Did a major interest rate change in the US cause it to lose strength against worldwide currencies? There is a lot of data and news reports that will impact this exchange. I do not expect full financial analysis, simply what was going on the world or that country which may have impact their currency value.

Same general idea for the stocks. Why did a companies stock drop or gain in value? New product offerings? Win of a major contract? Loss of major contract? Did a major brokerage firm put them on the buy or not buy list? Public perception of the company changed due to the sexual harassment allegations against their leadership? Yahoo financials and other services offer daily reports of the stocks and whether to buy or not or what is affecting its price.

The paper should cover what you believe caused currency or stock value to change. Was there any correlation? (Korean currency devaluation drove value of Korean air stock in the tank, for example). If you were leading an effort in that country, would you want your operations done in the local currency or the USD? If you have significant financial holding in that currency, are you making money off of it or losing value? Summarily, recognizing that fluctuations in currency impact international operations and can impact stock price, what are the risks you face as a business leader and how can you mitigate those risks?

I recognize you are not international financial managers and some of this may seem beyond you. I promise that it’s not. It’s learning the vernacular and learning how to read the numbers and connect them to world events. I will not be grading harshly on this one as I know it is a stretch for many. Do the work, give me your thoughts, show me you did basic research to understand the data and you will do fine.

If you do not understand the assignment or get lost in the data, please reach out to me and I will be glad to schedule some time to sit down and go over it with you.

Your task is in three points.

A. Use 4 different currencies. One from a Developed Country. one from a developing country, the Euro and the US dollar. Establish a baseline of the developed and developing countries currency, currently trading on the open market, compared to the US dollar and the Euro. Track the changes with at least 10 data points over time. Is there a trend? What events in the world, political activities, financial markets or business dynamics are impacting the changes?

B. Pick 4 stocks. Two from US based firms that receive significant amount of their revenue from international business. Two other stocks from companies deeply involved in the international market from different regions of the world. track the stock value with at least 10 data points over time. What is driving the stock price to change? Business factors? World events? Political implications?

C. Submit a spread sheet or there clear method to show the changes in these two areas over the time measured. Write to a paper describing what in your opinion or based on world events drove the changes, up or down. Were there correlations between currency value and stock value? How do the results impact an international business in daily operations or making decisions to invest/divest? would you recommend doing business in the US$ or other currency? What risks does a company face when dealing with the volatility of the financial and stock markets?