- Why did the gold standard collapse? Is there a case for returning to some type of gold standard? What is it?
- What opportunities might current IMF lending policies to Third World nations create for international businesses? What threats might they create?
- Do you think the standard IMF policy prescriptions of tight monetary policy and reduced government spending are always appropriate for developing nations experiencing a currency crisis? How might the IMF change its approach? What would the implications be for international businesses?
- Debate the relative merits of fixed and floating exchange rate regimes. From the perspective of an international business, what are the most important criteria in a choice between the systems? Which system is the more desirable for an international business?
- Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system similar to the ERM of the European Monetary System. What would be the likely consequences of such a system for (a) international businesses and (b) the flow of trade and investment among the three countries?
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