Eco GM 561 week 6 Individual Assignment: Monetary Considerations and Interest Rates - 7249

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  Individual Assignment: Monetary Considerations and Interest Rates

 

·         Resources: Big Drive Auto scenario

 

·         Refer to the Big Drive Auto scenario with the data that management has collected for volume of sales and prices. This is the same automobile and truck distributor from the Week Five assignment.

 

·         Write a report of no more than 700 words to summarize the following points.

 

o    Choose a country from a region you selected in International Economics and identify the monetary authority in the country you have chosen (comparable to the Federal Reserve in the U.S., the Bank of England in the UK, etc.). From the IFS database, identify the key monetary aggregates and interest rates that affect economic performance. You may access the IFS database by following these steps:

 

1.     Access the University Library through your student Web site.

2.     View the section called Library Resources.

3.     Click on Country Profiles and Economic Data.

4.     Select International Monetary Fund Statistics.

 

·         Evaluate how the key monetary aggregates and interest rates might affect Big Drive Auto's planning and operating decisions. You may consider these questions. Does the growth in the monetary aggregates suggest that general prices will be rising more or less rapidly? Are changes in interest rates favorable or unfavorable to Big Drive Auto's business? Based on the country you choose whereBig Drive operates, who are Big Drive Auto's key trading countries, within the same region, for distributing trucks and parts? If Big Drive Auto were to distribute its products to customers in those countries, what exchange rate and trade policies (quotas and tariffs) are in effect to facilitate or reduce Big Drive Auto’s exports?