International Finance (BBA FIN 309)
International Finance (BBA FIN 309)
Assignment 1: Understanding the Impact of the Asian Financial Crisis on the Adoption of Floating Exchange Rates
Objective
This assignment aims to assess your understanding of the Asian Financial Crisis and its profound influence on the shift towards a floating exchange rate system. Analyse the key factors that contributed to the crisis, its consequences on affected economies, and the subsequent policy adjustments that led to adopting floating exchange rates. Demonstrate your ability to critically evaluate the economic implications and policy decisions during this transformative period.
Instructions
Introduction (100 words):
Briefly introduce the concept of exchange rate systems and their role in international finance.
Causes of the Asian Financial Crisis (150 words):
Identify and discuss the primary causes of the Asian Financial Crisis. Reference specific examples from affected countries to illustrate these causes. Ensure that you cite relevant sources using APA referencing.
Policy Responses and Shift to Floating Exchange Rates (200 words):
Investigate the policy responses adopted by the affected economies to address the crisis. Focus on how these responses contributed to the shift from fixed to floating exchange rate systems. Evaluate the rationale behind this shift and its implications for monetary policy.
Benefits and Challenges of Floating Exchange Rates (150 words):
Briefly discuss the advantages and challenges associated with adopting floating exchange rates. Consider exchange rate flexibility, monetary policy independence, and economic stability. Support your arguments with relevant examples.
Conclusion (100 words):
Summarise the main findings of your analysis and emphasise the significance of the Asian Financial Crisis in shaping the international financial landscape.
Submission Details
Submit your assignment through Turnitin Link by 16 February 2024 (3:59 pm).
Ensure proper APA referencing for all cited sources.
The assignment is worth 25% (25 marks) of the course's total grades (100 marks).
Word limit: 700 10% (references and footnotes are not included in wordcount)
