Fundamental forecasting as applied to the euro

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1)Flame Inc., a U.S.-based MNC, regularly obtains euros to purchase French products.  It assesses U.S. and French trade patterns and inflation rates to develop a fundamental forecast for the euro.How could Flame possibly improve its method of fundamental forecasting as applied to the euro?

2)Universe Co. is a U.S.-based MNC with subsidiaries in most major countries worldwide. The executive board is in the process of changing its policy with regard to responsibilities of forecasting future exchange rates. Currently each subsidiary is responsible for the forecasting of the future exchange rate of its local currency relative to the U.S. dollar. In the future the forecasting is supposed to be outsourced to a financial intermediary. Comment on this plan



Reference no: EM13862855

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