Explores the implications of changing currency values on the profits of Australian retailer Billabong, which relies on the U.S. market for a significant share of its total sales. Discussion of the case can revolve around the following questions.
Below is the case study and a template to use for the format from another assignment that I had to do.
Answer the following questions:
1. Why does a fall in the value of the Australian dollar against the U.S. dollar benefit Billabong?
2. Could the rise in the value of the Australian dollar that occurred in 2009 have been predicted?
3. What might Billabong have done in order to better protect itself against the unanticipated rise in the value of the Australian dollar that occurred in 2009?
4. The Australian dollar continued to rise by another 20 percent against the U.S. dollar in between 2010 and 2012. How would this have affected Billabong? Is there anything that Billabong might have done to limit its long-term economic exposure to changes in the value of the currency in its largest export market?
Note: Your work should follow proper APA formatting including 12pt Times New Roman font, 1" margins all around, double-spaced, indented responses, title page, in-text citations, and reference page.
I have provided a template for you in Unit 2 to make it easy to plug your work into. I encourage you to download it from Unit 2 and save it. Please let me know if you have any questions.
Text book: International Business: Competing in the Global Marketplace. Charles W.L. Hill. McGraw-Hill